Investors certainly could have done worse than buy into General Electric's (NYSE:GE) turnaround prospects three years ago, as companies like Emerson (NYSE:EMR) and Siemens (OTCPK:SIEGY) ably demonstrate. Then again, a look at Honeywell (NYSE:HON), Rockwell (NYSE:ROK), or 3M (NYSE:MMM) likewise demonstrates that General Electric still hasn't regained all of its luster in the eyes of many investors.
It
has been about three years since I last wrote about General Electric
for Seeking Alpha, and quite a lot has changed. Management has moved
from "right-sizing" GE Capital to significantly shrinking the operation,
while significantly increasing its commitment to power and aviation as
long-term core markets. The valuation on these shares doesn't seem to
fully reflect the ongoing improvements in the business and while I can
understand hesitancy to invest in a business with sizable leverage to
power generation and oil/gas (and possibly some interest in mining) and
little leverage to auto/truck or non-residential construction, GE still
looks like one of the more undervalued industrial names today.
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General Electric On A Better Path, But Not Yet Priced Accordingly
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