Whats the outlook for GE after the Honeywell acquisition? And after Jack Welch steps down?
We have GE ranked 3-STARS, or hold. Our analyst Rob Friedman continues to question the quality of earnings because of their inclusion of an overfunded pension plan and the accounting actions that GE will take in regard to the Honeywell acquisition. We also believe that Jack Welch will be a very tough act to follow. Q: What sectors do you think are the most beaten up, and therefore have the best potential upside? A: In the year 2000, communications services, which is S&P’s description of the telecom sector, fell nearly 40%, followed closely by a 38% decline in technology and an 18% decline in consumer cyclicals. Standard & Poor’s currently recommends that investors maintain a defensive approach to the market by overweighting the energy, health-care, and utility sectors. If the Fed remains aggressive in lowering interest rates, however, the sectors in a leadership role could change — with technology and consumer cyclicals in the forefront. This has been a fairly consistent pattern durin
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- Whats the outlook for GE after the Honeywell acquisition? And after Jack Welch steps down?
