NEW CEO JOINING US RIGHT NOW
TALK MORE ABOUT THIS.
IS IT FINANCIAL PRESIDENT ALFRED
GREAT TO SEE YOU ALFRED THANKS
VERY MUCH.
NOW, GE HAS COMPLETELY TURNED
AROUND AND IT IS NOW UP 2% ON
THIS MISS YOUR REACTION IT WHAT
AWARE HEARING FROM GENERALS.
>> I THINK THAT'S A MARKET AS
YOU SAID EARLIER PRICED ON
EARNINGS MISSED AND THE
EXPECTATIONS HAVE BEEN PRETTY
LOW IF YOU LOOK AT THE STOCK ALL
YEAR, IT IS DOWN ABOUT 36%.
SO WHAT'S EXCITING ABOUT IT IS
THE NEW LEADERSHIP AND HOPEFULLY
NEW VERSION FOR GE GOING
FORWARD.
MARKET VALUE HAS BEEN CUT IN
MORE THAN HALF.
JUST BEEN A SLOW STEADY SELLOFF
FOR GE BUT I GUESS ON IT IS
WHERE IS THE GROWTH WHEN DUST
SETTLES ANDING TO DOES TURN
SELLING OFF PIECES OF THE
COMPANY WHAT'S THE AREA YOU LOOK
AT FOR A CULT TO REALLY SEE
GROWTH AND START CREATING
SHAREHOLDERS.
CULT SAYS POWER.
[LAUGHTER]
TO YOUR POINT IT HAS BEEN A VERY
SLOW STEADY LOSS ALL YEAR.
SO IF YOU LOOK AT --
MARKETS BEING RELATIVELY CALM
XEPGHT FOR FEBRUARY AND NOW IN
OCTOBER WITH VOLATILITY REALLY
SPIKING,
GE HAS BEEN A STAYED DOWNWARD
TRAJECTORY IN STOCK SINCE I CAN
SO I DON'T THINK THERE'S A WHOLE
LOT OF EXCITE WITH THE EXCEPTION
OF THE NEW KRERKS OH AND
HOPEFULLY HIS NEW VISION FOR IT.
>> MARIA MENTIONED POWER
DIVISION TO REORGANIZE POWER
DIVISION TO ACCELERATE
BUSINESSES OPERATING A
IMPROVEMENT WITH TWO UNITS IN
POWER DIVISION AND ORGANIZING TO
IMPROVE COST STRUCTURE ENHANCE
EXCUSE AND OUTCOME FOR INVESTOR
WELL THAT'S A LOT OF GOODENS.
BUT THAT'S ONE AREA OF FOCUS
TRYING TO IMPROVE THAT BUSINESS
ALSO.
SH RIPING AND DELEMPLEGGING GE
CAPITAL THAT CONTINUES TRYING TO
IMPROVE THIS LEVERAGE.
MORE ASSET SALES ARE COMING
CONTINUED DELEVERAGING OF GE --
CAPITAL.
I THOUGHT THAT WAS ALMOST --
HOLD ON.
CAPITAL I DID.
>> NOT QUITE YET AND WE TALK
ABOUT GE BUT THE THE MARKET CAP
LOOKED BELOW 100 BILLION
DOLLARS.
SO WHAT WAS ONCE A MIGHTY --
350 BILLION RIGHT.
YOU'RE TALKING IT WAS CLOSE TO
400 BILLION.
NOW, IT IS DOWN UNDER 100
BILLION SO IT WOULD BE
INTERESTING TO SEE IF THEY CAN
TURN IT ARRANGED THEY NEEDED
SOMEONE KNEW AT THE HELM THEY
HAVE SOMEONE NEW, AND IT WILL BE
INTERESTING.
>> YOU KNOW WHOLE SECTOR IS ALSO
CHALLENGED RIGHT.
WHEN YOU THINK OF DAGEN WAS
TALKING EARLIER ABOUT TARIFFS
AND YOU CANNOT NOT INJECT THE
TARIFF DISCUSSION WHEN YOU TALK
ABOUT LARGE INDUSTRIAL AND
CERTAINLY COMPANIES IN THE POWER
SECTOR SO THAT IS SOMETHING THAT
IS STILL GOING TO BE A HEADWIND
GETTING TO 2019.
>> DIFF END CUT THE HOW
SIGNIFICANT IS THAT FOR THEM?
>> I THINK THEY NEED TO CAPITAL
THERE WAS CHAT ABOUT A POTENTIAL
EQUITY RAISE NOT SURE IF I
MENTION I DID NOT GET A CHANCE
TO IT READ EARNINGS.
BUT A SECOND DIVIDEND CUT THIS
YEAR.
>> OKAY.
NOW LIKE I SAID IT IS NEW
LEADERSHIP.
I THINK THE BIG STORY IN OUR
OPINION, THE WAY WE LOOK AT
STOCKS IS OVERALL SENSITIVITY TO
THE MARKET CORRELATION TO THE
MARKET AND GE HAS ITSELF A NEW
PERSON AT THE HELM AND IT NEEDS
NEW LEADERSHIP AND IT NEEDS A
NEW VISION.
IF YOU'RE GENERAL ELECTRIC WITH
THIS QUARTER BIG HISS, AND
WIPING OUT DIVIDEND AND IF THE
STOBS KIND OF HOLDING STEADY ON
THIS I HAVE TO THINK THE NEW
LEADERSHIP WOULD CONSIDER THAT A
MAJOR WIN FOR THEM.
>> ABSOLUTELY.
I THINK THE FACT THAT IT IS
REVERSED AND IT IS UP A LITTLE
BIT THIS MORNING IS TELLING YOU
SOMETHING.
I MEAN, WITH THERE'S OPTIMISM
SEEP BACK INTO THE STOCK AND
THAT'S A GOOD THING.
>> UP 2% NOW UP A FRACTION LET'S
JUST PUT THIS IN CONTEXT THIS
COMPANY HAD A DIVIDEND OF 48
CENTS SHARE.
AFTER SPINNING OFF THE HEALTH
CARE BUSINESS, THEN IT CUT THE
DIVIDEND AND IT WAS A QUARTERLY
PAYOUT TO 12 CENTS SHARE NOW
DOWN FROM 24 CENTS AND NOW WE'RE
DOWN TO 1 CENT ON THIS DIVIDEND.
>> AND YOU KNOW, WHAT I THINK
ABOUT MARIA WITH --
>> I WANT TO POINT OUT BECAUSE
WE'RE TALKING ABOUT POWER UNIT
HAD A CHARGE OF 22 MILLION
BEFORE TAXES RELATED TO GE
POWER.
AGAIN, STRUGGLING TO SELL THE --
THE TURBINE MANUFACTURES TO
POWER PLANT AS POWER INDUSTRY IS
INCREASINGLY SHIFTING TO SAY
WIND TURBINE AND SOLAR.
>> AS WE SEE TECHNOLOGY TAKING
SUCH A MAJOR INPUT IN OUR --
ALL OF OUR COMPANIES TECHNOLOGY
ING HOW WE DO BUSINESS
THERE'S NO RULE I THINK IT IS
IMPORTANT FOR PEOPLE AT HOME TO
REALIZE, NO RULES THAT GE HAS TO
BECOME A BELL WEATHER STOCK
AGAIN.
THEY MAY BUT THEY ALSO MAY NOT
WE DON'T NEED GENERAL ELECTRIC
FOR U.S. ECONOMY TO MOVE
FORWARD.
>> AT ONE POINT IT WAS THE
LONGEST --
DOW COMPONENTS IT WAS THE ONLY
DOW COMPONENTS THAT STILL LEFT W
DOW COMPONENTS THAT STILL LEFT T
DOW COMPONENTS THAT STILL LEFT I
DOW COMPONENTS THAT STILL LEFT N
DOW JONES INDUSTRIAL AVERAGE 30
COMPANIES IN --
THE ORIGINAL, AND THAT WAS
KICKED OUT IT WAS KICKED OUT OF
THAT SO THAT'S ALSO SOMETHING AS
WELL.
>> IT'S A SIGN OF THE TIME.
YOU HAVE NEW DYNAMICS.
AND I THINK IT IS TELLING OF,
YOU KNOW, WHEN YOU LOOK AT
COMPANIES AND NEW ECONOMY
GROWING SO LARGE WITH MARKET
CAPS YOU KNOW, WITH IN THE
HUNDREDS OF BILLIONS AND SEEING
AMAZON FOR FIRST TIME IN I'M
SORRY APPLE GET A TRILLION
DOLLAR MARK IT IS TELLING YOU,
THAT VISION IS IMPORTANT AND
WITH G.E. HAS A SHOT.
SO THERE'S DIFFERENT LEADERSHIP
IN THIS MARKET WHEN DO YOU WANT
TO DO AND PUT NEW MONEY IN THIS
MARKET HERE WITH THIS VOLATILITY
THAT WE'RE SEEING EVER DAY?
>> SO WE SAW A LITTLE OPTIMISM
YESTERDAY WE SAW THE S&P WAS UP
AND DOWN --
400 BASIS POINT THAT'S A
TREMENDOUS MOVE.
BUT THE FACT THAT IT WAS ABLE
AND DOW WAS ABLE TO RECOVER SO
MUCH OF THE LOSSES IN THE LAST,
YOU KNOW, HALF HOUR --
SHOWED THAT THEY WERE BUYERS
COMING IN PERHAPS BUY THE DIP.
AGAIN, ALL OF THE FACTORS IN THE
ECONOMY CONTINUE TO BE VERY
STRONG AND POSITIVE.
SO WHAT YOU'VE HAD IN OCTOBER IS
A LITTLE BIT OF AN ANOMALY WE'VE
HAD 16 DOWN DAYS IN OCTOBER.
SO IF YOU WOULD LOOK AT NUMBER
OF DOWN DAYS TO UP DAYS THAT IS
TREMENDOUS A LOT OF VOLATILITY
WITH A LOT OF DOWNWARD PRESSURE,
AND YOU PUT A LOT OF DIFFERENT
MARKETS IN --
YOU KNOW CORRECTION AREA.
I MEAN, S&P IS JUST SHY OF BEING
IN CORRECTION IF SO GE IS MAKING
MAJOR CHANGES TO POWER DIVISION
WORTH MOTING BECAUSE THE
PROBLEM --
THE PROBLEMS WITHIN POWER ONE OF
THE REASONS THAT FORMER CEO WAS
OWTIONED JOHN BECAUSE THE BOARD
ESSENTIALLY DIDN'T REALLY THEY
SAY THAT THEY WERE BLINDSIGHTED
BY WHAT WAS IMENG ON IN POWER.
THAT DIVIDEND CUT FROM 12 CENTS
SLAIR TO ONE CENT A SHARE IS
GOING TO SAVE GE3.9 BILLION
DOLLARS OF CASH EVERY YEAR.
COMPARED TO THE PRIOR PAYOUT
LEVEL SO --
EVE WITH A JOBS REPORT OUTSIDE
FRIDAY IS THAT PRICED IN?
WE EXPECT GOOD NUMBERS FOR MONTH
OF NOVEMBER WHAT'S THE PRICE AND
EXPECT FROM THE JOBS NUMBER?
>> I THINK WE GET A GOOD JOBS
NUMBER.
I THINK WHAT'S PRICED IN IS
THE --
YOU KNOW, THE INTEREST RATE HIKE
THAT WE SAW.
WE'RE, YOU KNOW, 75% WE'RE
EXPECTING NOT ONLY IN DECEMBER.
BIG QUESTION IS GOING TO BE
AROUND ELECTION WHAT ULTIMATELY
HAPPENS IT IS ONLY A WEEK AWAY.
YOU KNOW, TARIFFS DID WEIGH IN
ON YESTERDAY THAT WAS PART OF
THE REASON WE SAW A BIG
PULLBACK, AND THE FOURTH QUARTER
IS GOING TO REALLY BE --
EXCUSE ME SOME FIREWORKS.
BUT I DO SEE A LOT OF POSITIVE
THINGS STILL PLAYING OUT STILL
CONTINUING TO BE CONSISTENT.
AND I DON'T THINK THAT THE --
YOU KNOW INVESTORS SHOULD TAKE
THEIR EYE OFF THE BALL IN TERM
OF THIS STRATEGY I THINK THIS IS
AN OPPORTUNITY TO REALLY
REBALANCE TO GET YOURSELF SET UP
WE SAW A LOT OF PROFIT TAKING IN
STOCKS THAT WAS CROWDED.
FANTASTIC TAKE THAT CASH USE IT
WISELY, AS YOU POSITION YOUR
PORTFOLIO FOR 2019 AND BEYOND.
>> PUT IT IN A DIFFERENT PLACE.