After years of investors and the press saying that GE (GE) would have to resturcture to get its stock moving North again, perhaps the deaf ears are open.
GE is selling is large plastics business and hopes to get $10 billion. In an odd twist the unit will be auctioned. GE does not want to be seen as playing favorites with the private equity folks. The Justice Department is starting to show concern about that sector.
The plastics unit had revenue of $5 billion in the first three quarters and an operating margin a little over 10%. GE did about $127 billion in total revenue over that period.
With its stock finally rising from $32 six months ago to about $38 now, GE management has to show that modest growth and a strong balance sheet are not all the company has to show on Wall St.
Investors want the dogs let out. And, they should hope Universal NBC is next.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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