In this video, analysts Austin Smith and Isaac Pino discuss the reasons to be bearish about General Electric (NYSE: GE).

Although Isaac is more bullish than bearish on this stock, he points out how the company's financial unit affected the entire company during the 2008 financial crisis and how management wasn't able to foresee the future to mitigate the damage.

In addition, GE faces high pension costs and an aging workforce, as many old, large industrial companies do. Other potential problems include the company's exposure to the defense industry -- not a promising prospect with so much fiscal uncertainty in the air -- and its tax liability with respect to high lobbying expenditures.


Given these challenges, Austin suggests investing in 3M (NYSE: MMM) instead, since it's similar to GE in many ways but isn't exposed to the same concerns. 

Even as GE recovers from financial crisis-related issues, there are still other problems that could lead to poor stock performance. However, management did take advantage of the market's dip to make some strategic bets in energy. If you're a GE investor, you need to understand how these bets could drive this company to become the world's infrastructure leader, but you also need to be aware of the continuing threats to GE's portfolio. To help, we offer comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE, and you'll receive continuing updates as major events unfold during the year. To get started, click here now.

The article GE: Reasons to Sell originally appeared on Fool.com.

Austin Smith, Isaac Pino, and The Motley Fool own shares of General Electric. Motley Fool newsletter services recommend 3M Company. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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thomas85225

GE faces high pension costs and an aging workforce, as many old, large industrial companies do. Other potential problems include the company's exposure to the defense industry -- not a promising prospect with so much fiscal uncertainty in the air -- and its tax liability with respect to high lobbying expenditures.

Given these challenges, Austin suggests investing in 3M (NYSE: MMM) instead, since it's similar to GE in many ways but isn't exposed to the same concerns.

WOW same a Boeing

Boeing ceo jim mcnerney is from GE and 3M

1975 – 1978 Procter & Gamble Brand Manager
1978 – 1982 McKinsey & Company Senior Manager
1982 – 1988 GE Mobile Communications General Manager
1988 – 1989 GE Information Services President
1989 – 1991 GE Financial Services and GE Capital Executive Vice President
1991 – 1992 GE Electrical Distribution and Control President and CEO
1993 – 1995 GE Asia-Pacific President
1995 – 1997 GE Lighting President
1997 – 2000 GE Aircraft Engines President and CEO
2000 – 2005 3M President and CEO
2005 - Now The Boeing Company Chairman, President and CEO

http://en.wikipedia.org/wiki/James_McNerney

December 10 2012 at 5:20 PM Report abuse rate up rate down Reply