LIZ: THE DOWNFALL OF GE HAS JUST
GAPPED DOWN AGAIN, EVEN FURTHER.
JPMORGAN SLASHING ITS PRICE
TARGET ON SHARES OF THE ONE-TIME
AMERICAN INDUSTRIAL GIANT TO $6,
BECOMING THE STOCK'S LOW ES
BECOMING THE STOCK'S LOWESS
BECOMING THE STOCK'S LOWEST P.T.
ON THE STREET.
P.T. SHORT FOR PRICE TARGET.
ANALYSTS FORECASTING SIX OF GE'S
EIGHT UNITS TO SHOW NO, YOU
HEARD ME, NO GROWTH BY 2020 IN
THE LATEST NOTE WHICH ALSO SLAMS
THE COMPANY'S DETERIORATING
FUNDAMENTALS.
THE FORMER BLUE CHIP TRADING
NEAR ITS LOWEST LEVEL IN NEARLY
TEN YEARS, AT THE LOW TODAY, $8,
I WANT TO GET THIS RIGHT BECAUSE
I LOOKED UP AND SAW IT AND SAID
NO WAY, $8.15.
LOW OF THE SESSION.
>> EVEN YOU CAN AFFORD THIS
STOCK.
LIZ: CHARLIE.
>> BY THE WAY, THESE BATTERIES
ARE POWERED BY GE, I BELIEVE.
THEY ACTUALLY DO SOMETHING
RIGHT.
LIZ: THEY DO A LOT RIGHT.
>> LET'S JUST GET TO SOME OF THE
REPORTING THAT I'VE DONE ON GE.
THERE WAS A RUMOR TODAY THEY
WERE GOING TO BRING BACK, HIRE
SOME MAJOR, MAKE SOME MAJOR
HIRING.
IT'S NOT TRUE.
THERE'S LOTS OF RUMORS GOING ON
ABOUT WHAT MIGHT HAPPEN GOING
FORWARD AT GE.
WHAT I'M GOING TO TELL YOU NOW
IS NOT RUMORS, THIS IS WHAT I
KNOW FROM INSIDE THE COMPANY,
THAT IT IS STILL WORKING ON A
PLAN TO FIGURE OUT WHAT TO DO
WITH IT, HOW TO DELEVERAGE, HOW
TO FIX WHAT IS CLEARLY AN ISSUE
HERE AND IT'S THIS.
THIS IS WHAT THE PEOPLE INSIDE
GE WILL TELL YOU.
IT USED TO BE THAT THE WHOLE OF
GE WAS BIGGER THAN THE SUM OF
ITS PARTS, THAT AS A COMBINED
ENTITY, WHATEVER JACK WELSH, THE
LEGENDARY CEO PUT TOGETHER, THAT
WAS WORTH A LOT MORE THAN EVEN
IF THEY SPUN OFF EACH UNIT.
THE OPPOSITE IS GOING ON RIGHT
NOW.
WHAT THEY BELIEVE IS THAT THE
ANALYST COMMUNITY AND INVESTORS
DON'T BUY THE NOTION THAT THE
THREE MAIN COMPANIES, AVIATION,
HEALTH CARE AND WHAT ELSE,
POWER, THAT THOSE THREE THINGS
ARE BETTER OFF TOGETHER THAN
SEPARATE.
WHAT DOES THAT MEAN FOR THE
COMPANY?
OBVIOUSLY THERE ARE TWO WAYS TO
GO AT THIS.
YOU TRY TO FIX WHAT YOU HAVE
RIGHT NOW BUT CLEARLY, YOU TRY
TO BREAK IT UP.
YOU BREAK IT UP INTO THOSE THREE
PIECES AND THAT'S WHAT YOU'RE
HEARING FROM LONG-TIME GE
EXECUTIVES I SPEAK TO WHO HAVE
SOURCES INSIDE THE COMPANY, THAT
THAT IS CLEARLY ON THE TABLE.
NOT SAYING THEY'RE GOING TO GO
THAT WAY.
BUT LARRY CULP, THE NEW CEO, AND
BY THE WAY, IT MAKES COMPLETE
CONCEPTUAL SENSE.
LIZ: HE JUST MADE A HUGE --
WELL, HUGE, HE BOUGHT SOME STOCK
BECAUSE WHEN INSIDERS BUY, IT
LOOKS LIKE A VOTE OF CONFIDENCE
HERE, AND HE BOUGHT IT WELL
ABOVE WHERE IT IS RIGHT NOW.
I'M NOT EXACTLY SURE.
I CAN CHECK.
>> WE SHOULD POINT OUT THAT
UNSCRAMBLING THE EGG IS NOT THAT
EASY, RIGHT?
TAKING THIS COMPANY --
LIZ: I DIDN'T REALIZE YOU COULD
UNSCRAMBLE AN EGG.
>> THAT'S WHAT I'M SAYING.
CAN YOU REALLY LEGITIMATELY
BREAK THESE THINGS, THIS THING
UP INTO THREE PIECES?
IT'S HARD, BUT INVESTORS ARE
CLEARLY SAYING YOU GOT TO DO IT.
THE ANALYST COMMUNITY CAME OUT
TODAY, JPMORGAN SAID THIS IS A
$6 STOCK NOW.
LIZ: HE BOUGHT IT AT $9.73 PER
SHARE ON THURSDAY.
>> WELL, YOU KNOW, LISTEN, THERE
IS ALSO A THEORY THAT HE'S
BASICALLY PLANNING FOR THE WORST
BUT -- HE'S BASICALLY TAKING ALL
HIS WRITE-OFFS AND EVERYTHING
NOW, MAKING IT MUCH -- TAKING IT
MUCH MORE THAN HE NEEDS TO
PREPARE FOR THE FUTURE TO KEEP A
LITTLE BIT IN THE BANK.
I'LL TELL YOU, THIS IS WHERE IT
GETS INTERESTING FOR AN
INVESTOR.
IT'S NO LONGER A DIVIDEND STOCK.
NOW YOU GOT TO BUY, YOU THINK
IT'S GOING UP.
LIZ: WHAT ARE THE SPOKESPEOPLE
SAYING.
>> THEY WILL NOT DENY THAT THE
COMPANY COULD BREAK ITSELF UP.
WE ASKED THEM THAT SPECIFICALLY.
JENNIFER ERICKSON, A PRETTY
STRAIGHT SHOOTER, SHE BASICALLY
CAME OUT WITH A NON-DENIAL
DENIAL.
SHE SAID GE IS FUNDAMENTALLY A
STRONG COMPANY AND THE
MANAGEMENT HAS TAKEN
EXTRAORDINARY ACTION TO
STRENGTHEN OUR BALANCE SHEET.
LIZ: CAN I QUICKLY ASK WHAT YOU
THOUGHT OF PETER NAVARRO CALLING
WALL STREET UNREGISTERED FOREIGN
AGENTS FOR TRYING TO CONVINCE
PRESIDENT TRUMP TO QUICKLY END
THE CHINA TRADE WAR?
>> YOU'RE THROWING ME A
CURVEBALL THERE AFTER I'M
TALKING GE.
LIZ: SORRY.
I JUST HAVE TO GET YOUR THOUGHT
ON THAT.
YOU KNOW PETER.
WE KNOW PETER.
HE'S O
HE'S BEEN ON THE SHOW.
>> I LIKE HIM, HE'S A NICE GUY.
HE'S A FIRM BELIEVER IN
PROTECTIONISM.
LISTEN, IF IT WASN'T PETER
NAVARRO, I WAS SOMEWHAT EDUCATED
BY HIM HOW PERNICIOUS CHINA IS.
I GET THAT.
NOW I GIVE HIM CREDIT FOR THAT.
I THINK HIM BRINGING THAT TO THE
FOREFRONT OF THE NATIONAL
CONVERSATION IS VERY GOOD.
IT'S VERY GOOD FOR BUSINESS.
BUSINESS WAS LITERALLY LAYING
DOWN, GIVING STUFF TO CHINA TO
GET ACCESS TO ITS CONSUMER, IT'S
GAZILLIONS OF CONSUMERS, ITS
MARKETS.
AND IT WAS HURTING THE COUNTRY.
HE DESERVES CREDIT FOR BRINGING
THAT TO THE FOREFRONT OF THE
NATIONAL CONVERSATION.
PROTECTIONISM, THOUGH, HAS NEVER
BEEN A GOOD ECONOMIC POLICY.
AND I THINK THERE ARE BETTER
WAYS TO GO AT CHINA, THROUGH
TPP.
REMEMBER, TRUMP GOT OUT OF TPP,
TRANS-PACIFIC PARTNERSHIP.
THAT WAS A TRADE DEAL WITH
EVERYBODY BUT CHINA, TO ISOLATE
CHINA.
HE GOT US OUT OF THAT.
I THINK --
LIZ: DIDN'T QUITE GET A CHANCE
TO REALLY --
>> RIGHT.
NOT ONLY THAT, HE GOES AFTER OUR
TRADING PARTNER.
MEXICO IS NOT OUR ENEMY IN
TRADE.
YOU KNOW WHAT I'M SAYING?
IT IS WHAT IT IS.
NEITHER IS CANADA.
SO I WOULD SAY THAT I LIKE -- I
APPRECIATE WHAT PETER BROUGHT TO
THE TABLE ON CHINA.
LIZ: OKAY.
>> I WILL SAY THAT TARIFFS NEVER
WORK.