What Happened At GE Under Immelt Was A 'Disgrace': Jim Cramer | CNBC
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- Опубликовано: 26 июл 2024
- Mr. Immelt did some bad things here, says CNBC's Jim Cramer discussing General Electric's third quarter results, which missed on earnings.
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What Happened At GE Under Immelt Was A 'Disgrace': Jim Cramer | CNBC
I wrote this several years ago and it encapsulates why I do not like GE and have not for years:
About 12 years ago (about 18 years now) I worked on a contract at GE oil & gas. I had never been exposed to GE before. My main job was to review a bunch of engineering that they had sent to India as an outsourcing effort. I was a little curious about that since outsourcing was new. Why was GE outsourcing and why didn’t they review it themselves? Why did they feel the need to hire outside contractors?
The first question was pretty obvious. Outsourcing was cheap. The Indian hourly rate was about 20% of the American contracting rate. Of course, you get what you pay for. For the two years I was there we never received anything from India that could be used without being reworked. It was so bad that they were basically wasting their money outsourcing. I pointed this out to one of the older Tech leads and he just shook his head, “Welsh said it was good and no one questions God. Besides we charge you to the contract and not to overhead and none of the management cares.”
So, why didn’t GE review it themselves? Because they couldn’t. They had a crust of old time engineers, guys who were in their 50s and knew what they were doing (kind of like me at the time). But, everybody else was young and inexperienced. Particularly their managers. You see, at GE, you have all of these people with impeccable resumes (top notch engineering schools, MBAs, and Sigma Six training) who dress up well but have never been a plant engineer or started something up. They haven’t gotten their feet muddy on an oil rig or a platform, or walked a refinery. Their idea of engineering is to write a check to a real engineering company and make an entry into a database.
And that is the real problem with GE. It is all about the measurement, but not about the “nuts and bolts.” Their managers can fill in a mean spreadsheet but would have no clue how to change an impeller on a pump (heck, they wouldn’t even know what an impeller was).
So, I believe Immelt means what he says but he doesn’t have any mud on his feet either. Those guys who really understood the Oil&Gas business were long gone. That is why I don’t buy GE.
I wrote the above when GE was above 30 and before Alstom. The Alstom purchase floored me. When you think of high quality, efficient engineering and construction, France isn't the first country to come to mind. And, you really think the EU will let you make money? It was just stupid from the gitgo
“Mr Flannery is going to return it to being a great American company” - Or he’s going to leave after 1 year
He didn’t leave. He got fired
China is smiling and just waiting for the right moment...
This guy is so emotional and dramatic, he's hilarious he was born for television.
Impressive how bad Immelt was. He destroyed the company.
Today GE is around $8 smh
Cramer is spot on in this segment
"I refuse to be a sham"...except you are.
wow jim telling it like it is
I think that the price today, around $22.00 is where it was 20 years ago.
it is. pathetic.
14
It will make a great comeback!!
Many might think that Weich walked on water, but he chose Immelt to be his successor. Guess you never really know a person like you might think.
GE is trading around $10 a share. I think you could make some money on it. It could be like Bank of America trading around $6..and now look at it.
how come no specifics re YOUR forensic accountant's review of their books?
They hit me again from toilet where I'm living at
How's that 6 sigma thing working out for ya?
BUY IT!!!!!!
as a kid, I figured G.E. to make robots in the future...
they had armaments contracts, what else did they make?
automated manufactures are the future, why did nt they build appliances that way?
G.E. figured by humans, made by robots.
slave labour manufacturing is over, wages always increase with economy, it s unavoidable.
non-sense,, Jack Welch ripped the company off juggling debt and kicking the can down the road, while in retirement, he still ripped the company off.. this guy is a scapegoat...
GE is looted
We need more people like Jim Cramer.... huge experience, honest and remarkably correct about business and the ref the market!
I'm confused. Imelt was tall. What went wrong? I guess promoting women into 9 out of 10 management jobs backfired.
I usually don’t like Cramer, but he’s spot on. It surely is a disgrace.
The truth hurts but Cramer did everybody involved in GE a service. Cramer is right, of course!
wow man, first time seeing Cramer this disorientated in front of the cam
We need to help GE!!
Rip GE
It will make a comeback
Investor Jess I think next 5 coming yrs, we will be seeing sell of assets n divison.
How come you didn't pose these questions to Immelt 3 years ago, Jim? Seems you were possibly trying to ingratiate yourself to him declaring Immelt a great CEO when GE owned CNBC. You were just a lap dog for GE 3 to 4 years ago and never posed these questions in public on the insurance and accounting issues. Your tough sounding persona now with GE is comical just as you try and forget all the socialist policies you actually support behind the double/triple talk you espouse on your comedy show.
It was not not possible 3 or 4 years ago to actually see exactly what GE was doing. In 2009 the share price was $7 and in 2016 it was $30.
Nobody could guess that it was going to be down at $13 from appearing on a TV show.
Crammer like everybody gets it wrong sometimes or maybe every time but that does not mean you can just pontificate like you have some deep insight after the event.
@@bighands69 ha!, keyword "after"