GE (GE) has elected not to sell any of its really core assets. Instead, it has elected to resturcture its major divisions and shuffle management.

The move may work, but it could be a year of more until Wall St. knows that. GE is big enough so that it could take several quarters for the new structure to bear results.

The world’s largest conglomerate will cut its number of major divisions from six to four:

GE Technology Infrastructure will include Healthcare, Aviation, Transportation and Enterprise Solution. According to the company, "These businesses have opportunities to leverage technology, software and engineering."

GE Energy Infrastructure will be the umbrella for the firm’s energy, oil & gas, and water business. The parent says "These technologies already work together with large customers, particularly in emerging markets."

GE Capital will combine the company’s commercial and consumer lending. NBC Universal will continue to stand on its own.

The shuffling of divisions and management should really not interest investors. GE’s shares are now inexpensive by almost any measure. With the exception of an unforeseeable major problem, GE is predicting relative robust growth despite a slowing economy.

With a gold-plated balance sheet and tremendous cash flow, GE is not a $28 stock. Not in a period when most other stocks are becoming more risky as the months pass.

Over the next year, GE may not get back to its 52-week high of $42.15, but its results and financial strength in a deteriorating economy make it one of the most attractive big cap stocks in the market. The second quarter earnings from hundreds of companies in businesses across most major industries are making that very clear.

Douglas A. McIntyre

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