GE’s (GE) share price has had a bit of a run over the last three months. Until that point, the stock was flat with where it traded in July 2005. Now, two years later, the shares are up 10%. Over that period, the S&P is up 25% and rival conglomerate Siemens (SI) stock is up over 80%.

GE likes to talk about how its will make money on the global "greening" of industry. It will provide the low emission products and the new technology to help Al Gore. And, the company speaks endlessly about its opportunities in China and India.

But, when the rubber meets the road, GE has a problem.

Yesterday, GE (GE) and Abbott (ABT) said that they could not come to terms on their announced deal for GE to buy the medical company’s diagnostic units for just over $8 billion. At the time, the head of Abbott said: “As part of GE, Abbott’s core diagnostics and point-of-care businesses will be powerfully positioned to sustain and extend their market success.” The companies just had to finish up and close.

The companies now say they cannot come to terms on the sale. Big announcement. No execution. In fairness to GE, The Wall Street Journal writes: "GE may have been nervous about taking on regulatory issues; its surgery-equipment business has been under a consent decree since January." Maybe the conglomerate should have done more due diligence before announcing its plan

But, the day before, GE said it might have to take a charge of about $200 million for write-offs of its sub-prime mortage porfolio. In Q1, the company took a write-off of $500 million and gave the impression that the problem was behind it.

GE’s troubles with investors are based to a large extent on walking around the world talking about the big things the company will do in five or ten years. Back at the headquarters, not so little things keep going wrong.

Douglas A. McIntyre can be reached at [email protected].

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