Obviously Mr LaMonica hasn’t watched the stock price go from 54 right after the split to below 40 now. Tyco unlocked value all right – unfortunately once it was unlocked it walked right out the door.
GE needs to be broken up into: GE Financial, GE heavy industries (jet engines, diesel locomotive), GE Plastics, GE Appliances and GE Media (NBC, etc)thereby unlocking vast shareholder value.
Procter & Gamble needs to disgorge Gillete and reacquire its old cash cows, Crisco, Jif peanut butter by absorbing Smuckers. Getting rid of cash cows in favor of speculative “growth” adventures will eventually come home to haunt management and put PG on the rocks simlar to the way that Bristol_myers did by shedding its money makers, Excedrin, Ipana toothpaste and other household products.
All the big banks, Citigroup, B of A, for example, need to be broken up, either voluntarily or by gvernment fiat, into manageable pieces, slicing off the investment bank adventureism from the solid retail banking arms, therby providing stability and confidence to the credit system and adding immeasureably to shareholder value.
Weyhaueser Inc. needs to speed up the process of breaking itself up into its component parts leaving its timberland operation reorganized as a REIT.
Yes. They get so big they can’t hold up their own weight, witness GE.
Actually, they deserve what their greed created, but unfortunately, stockholders and taxpayers end up paying the piper.
Makes one long for simpler times.
Yes, but it ain’t gonna happen, folks. They have too much clout in D.C., and globalization is upon us whether we like it or not.
It’s a catch-22; purchasing drives economies and when it goes down, recession rears its ugly head.
The simpler life days are over whether we like it or not.
Buy “on sale” selectively to help hold prices down. Only fools pay retail.
Yes. The big ones are driving out the competition which helps hold prices down.
Once they dominate markets, they will set prices wherever they want and then we’ll pay and pay.
Break ‘em up or set growth limits.
Wrong question; should be, “is America on its way to being down and out?”
Look at it this way:
The American economy is a might oak.
It’s being eaten away by multiple foreign insects.
When the insects reach the roots, the might oak will fall.
Some day, unless a remedy is found, history will record its fall.
I wonder how long it will take.
it’s a sign of the times.
With globalization making its way around the globe. The only way an organization, or person for that matter, can stay ahead is by specializing so that they become proficient and better than the next.
This in turn requires dependency on others to complete the loop(to fill in the gaps).
Conversely, you are expected to be the best in the area you manage. And this creates a vicious cycle of concentration in skills and knowledge base.
GE of course. Has floundered for a long while now. A breakup would decrease the higher intermediate costs and put more to the bottom line. Take the best from the existing Giant and place elsewhere in the spun off companies. Have been a shareholder for some 20 years or so and know the history.
GE – Infra, Healthcare, NBC, Cons Fin and Comm’l Finance should all be on their own and allowed to thrive without the burdensome Fairfield bureaucracy. Besides, anyone who believes there are significant synergies across the varied businesses probably still believes the Patriots will win the Super Bowl!
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GE is the best manageed company in the world….that does nothing for its investors, over the last 5 years!