| Videos | Channels | Search |
Don’t Mind GE’s ’Bumpy’ Road
There has been a lot of talk about General Electric’s profits dropping, but don’t let that put you off, says Saxo Bank’s Peter Garnry. It is actually a solid long-term investment.
The multi-billion pound company dips its toe into a broad range of industries such as aviation, healthcare and finance. The downside to this approach is that it’s sensitive to the global economic downturn; when the economy suffers, so does GE.
During the financial crisis, concerns about GE Capital torpedoed GE's stock price, cost GE its top-level triple-A credit rating and forced it to cut its dividend.
But the company is now back on track and last year, it had net income of $7.4 billion on $46 billion in revenue.
GE’s Chief Executive Jeff Immelt said in May this year that GE Capital is ending net investment.
01:33 minutes
Tags: aviation, economic downturn, economy, equities, finance, financial crisis, ge, ge capital, ge share price, general electric, healthcare, investment, jeff immelt, long-term investment, net investment, profits, revenue, saxo bank, saxo tv, shares, stock price, stocks, tradingfloor.com, triple-a credit rating, video