Thread regarding GE Power layoffs


GE is currently trading at $20/share. With a PE of 25. Competitor Siemens is at $71/share and PE of 17.

GE (Earnings Per Share) EPS = (20/25)=$0.80

Siemens EPS = (71/17) = $4.17

In other words, to investors I’m better off buying a stock with a better earnings per share. So buy Siemens. If we assume in order for GE to reach a PE of 17.

Price of a share of GE would have to be =17 x .80 = $13.6

You might even say that GE has a more diversified portfolio. Pratt and Whitney is part of UTX that trades at a PE of 17 to. Warren Buffet didn’t even hold onto his GE stock. The KING OF BUY AND HOLD WARREN BUFFET DUMPED GE PREFFERED STOCK.

Lets play with the numbers I heard you all love Six Sigma and lets go lean. In this game of Six Sigma “How much money does each employee actually contribute to each share of stock price? How many employees will GE have to fire to match Siemens?”

GE (EPS/#ofEmployees) = .80/300,000 =.00000267

Siemens (EPS/#ofEmployees) = 4.17/348,000 = .00001198

In order for GE to match seeing that business people run your life and your considered an expense just solve for y.

(.80/ y) = (4.17/348,000)

Y = ~68,000 employees needed to match Siemens

300000 – 68000 = 233,000 Pink Slips

The culture there is messed up. You took a business built on innovation and shear size and screwed it up. As a conglomerate from, plastics, entertainment, air and industry. How is just going industrial going? Your six sigma guru Jack Welch cutting and out sourcing leaning on financial to help drive the price of a stock per quarter. Ever read his book WINNING how is it working? A business built on numbers and white night managers has screwed you. The numbers above are scary for employees holding on shares for retirement and hypothetical lay off of 200k employees. So here is my honest candid point of view. If you going to be in power gen….IT BETTER BE THE BEST UNITS. If you are flying with a GE engine ….WHY WOULD YOU TEAM UP WITH PRATT AND WHITNEY IF YOU COULD DO IT YOURSELF. If the Indian government wants electric trains ……MAKE THEM ELECTRIC TRAINS. If your going to make electric batteries for industry …. EVERY HOUSE SHOULD HAVE GE BATTERIES FOR THERE SOLAR UNITS

Just commit to an idea and follow through. All your managers need to read Edward Deming’s 14 Points and 7 deadly sins of business. I don’t think Jobs or Bezzos had a problem committing where they were going.

by | Post ID:
1400 views | 5 replies (last )
Comment! It's anonymous! Reply to this post anonymously by submitting the form near the bottom of the page!

5 replies (most recent on top)

*there, they're, their

by | Post ID:

I smell Layoffs and Business being sold. Good luck life after GE is better

by | Post ID:

Excellent analysis although with very gross assumptions - but bottom line is clear.... Culture of commitment and hard work only gets company to sucess ... not big mouth speaking and so many videos

by | Post ID:

THis is why they target older people

by | Post ID:

All true it you consider all the employees have the same salary. When instead 50% of the employees is neither 20% of the salary expenses, you can cut much more people, with few earnings. But then, who will do the hard work? The Executives?

by | Post ID:

Post a reply


Related pages

bjs corporatetetra international incverizon store burlington maalliance data stock priceverizon wireless in huntsville txexterran columbus txgeographic salary differentialsconagra foods newport tennesseewww jobs sears comalbertsons warehouse locationsjp morgan chase columbus ohdigitalglobe colorado866 492 5336ge oil and gas okchronestop comverizon wireline jobsbarnes and nobles closingdale medicalpharmerica phoenix az88sears work schedulewalmart com employment applicationvf corp greensboroutrc jobsat&t retail account executiveibm job cuts ukcio pepsicowhere is mcdonald's corporate officealtagas ltdnewjersey craigslist orgdnr stock price todayfreeport-mcmoran copper & gold inchow much does a cashier make at whole foodskohls fremontat&t in birmingham alsjm careersentergy jobs arkansasoracle jobs malagawhere is windstream locatedaeropostale inc stockcenturylink jobs in denversenior director qualcomm salaryold dominon truckingintel corporation ceost lukes medical center boisetesta companiessears repair canadaatt login account managertime warner cable txlowes waco hoursnational oilwell careersmetlife bridgewater njunion general hospital blairsvillesears hoffman estateshours kmartconstant contact tickerhow much do bank tellers make at bank of americadirectv call center boiseconesco incsmith and nephew layoffswyotech florida locationstarget corp layoffssports chalet stockcenturylink denver phone numberconagra pensionaccredo careersuniversity of phoenix award letteroxy elk hillsnabors crosby txkohls in san diegowells fargo dallas oregonsoftware engineer itt tech