Dow Jones Industrial Average component General Electric Company sold off to a two-year low on Monday after the company announced the departure of key executives as part of a housecleaning and reorganizational initiative by new CEO John Flannery. The decline added to 2017 losses in excess of 25%, dropping the blue-chip conglomerate into the 30th and bottom slot in Dow component relative strength.
The company has spread itself too thinly in recent years, managing a mish-mosh of outperforming and underperforming units. The conglomerate is now slimming down by reorganizing the executive suite and dumping unprofitable businesses, but the process has not inspired investor interest, at least to this point. As a result, the persistent decline could continue in the coming months while the hefty 3.91% dividend slows but fails to stem a long-term shareholder exodus. (See also: GE – Being Cheap Doesn’t Make It Attractive: JPM.)
General Electric shares fell to a two-year low this week, dropping to the bottom of the DJIA performance list. …read more
Read more here: Should You Sell Your General Electric Stock?