Outside Erie

7 Responses to “GE’s Stock and Erie”

1. Erie Blogs
   June 17th, 2008 at 1:17 pm

   GE Transportation nets $99 million dollar contract…

   Just this morning, Peter Panepento at Outside Erie was commenting on GE’s recent stock woes and what that means to the Erie area. But a significant drop in GE’s stock price is bad news for Erie. A lot of folks count on the value of that GE stock to p…

2. James A
   June 17th, 2008 at 3:54 pm

   Interesting note - Obama made a reference to those wind turbine manufacturers in a speech in Flint, MI, yesterday.

   “…It’s time to make energy security a leading priority. My energy plan will invest $150 billion over the next ten years to establish a green energy sector that will create up to 5 million jobs over the next two decades. Good jobs, like the ones I saw in Pennsylvania where workers make wind turbines, or the jobs that will be created when plug-in hybrids or electric cars start rolling off the assembly line here in Michigan. “

3. MGR
   June 17th, 2008 at 8:37 pm

   The problem at GE is GE Capital, basically you can’t apply six-sigma and lean manufacturing principles to build a better lender just because you have a lot of idle capital to invest. They are just learning this the hard way.

   The biggest risk to the Erie plant is that they could hire a head of the transportation division who lacked vision. Someone who chooses to foreign source product to cut costs rather than capitalizing on skill and technology advantages we still possess in the states. These advantages become less effective for anything that is stock/commodity products, but locomotives are not. We have had two strong leaders of the local operation in a row so hopefully that trend continues.

4. George Vietze
   June 18th, 2008 at 6:32 am

   In these troubled economic times ,GE with a substantial portion of their investments in financial assets, is feeling the effect reflected in its stock price. GE Transportation continues to shine because, as Jeff Immelt reiterated at the stockholders meeting in April, GE has invested billions of dollars in technology that has allowed it to compete on a global basis with its solid team in Erie, Pa. That says a lot about the management team and workers in Erie, they have proven to be amongst the most detailed, efficient, hardworking group over a long consistent period of time, producing record profits even in the most difficult of economic times. This should signal GE and other companies about the work ethic and capabilities of the Erie worker.
   GE is one of the worlds most pragmitic companies, if anyone understands the “If it is not broke - don’t fix it !” attitudes, GE does.
   Why,when GE and a lot of companies are facing rough economic times would they change or re-direct their plan for the Erie plant. The put ther money where they speak, they invested $15 million more dollars in educating workers in Erie, as evidence they want to continue what is already working. Erie has a hard time accepting prosperity, Erie has earned that reputation at GE and should be proud of that honor, shout it from the roof-tops and let other companies know from whence it comes. The work ethic in Erie is strong, the educational resourses are located in Erie, if a company is willing to pay what GE pays its workers ,and invest in the community educational programs the same benefits could add to their productivity. Move to Erie as we demonstrate to the world that our workers can produce, our politics are improving, our beaches and our lifestyle is a good place to raise a family, we have great medical facilities, educational facilities, less in the way of natural disaster potential, not on anyone’s radar screen for terrorits attacks compared to larger metro areas, great real estate values and some of the most caring people of any community. GE is a lot of things, but it is not known to invest money in any area without a major benefit…..come to Erie and find out why GE makes money here, year after year, it is not all about GE, some of it is about the Erie workers and the community they live in. Erie, Pa.

   The Governor has recognized this and wants to invest more in Erie, please give him a call, he needs your beaches, hotels, convention center and attractions to increase his gambling revenue for the State of Pa., I believe he has a listed telephone number, better yet when you are in Harrisburg, drop in and visit him personally, before he starts to feel that his many invitations and messages to accept his money go unanswered.

5. Danny Lucas
   June 18th, 2008 at 10:11 am

   Immelt continues to separate himself from the Welch administration. He is clearly willing to invest in a 20-year game plan, and is confused as to why the investors don’t applaud his vision and risk taking with higher stock prices.
   —-GE Watchers Blog

   The author above, William Rothschild, is NOT a Jeff Immelt fan.
   He makes the statement mockingly.

   I applaud the statement as a witness to Jeff Immelt’s character.

   I have long maintained that Jeff Immelt is the best thing that has happened for GE, both Corporate and Locally. His strategy is transparently future oriented, long term, and green influenced.
   All of those mean long term stability and growth.

   All of those are qualities shed by many in corporate power today.
   Leadership largely thinks in segments of 90 days, or one quarter at a time. Meet those numbers that Wall Street sets for YOUR target to appease them in reviews of YOUR stock, and you are a hero, albeit NOT a working-class-hero.

   To accomplish 90 day dreams of insta-cash, outsourcing has been the name of the game. The United States of America has benefited by the leadership of Immelt at GE. In thinking long term, he is utilizing the strength and assets he has.

   Wall Street has been adamant. “Get rid of those damn appliances and let the Chinese manufacture them”.
   Note to Erie, PA: “Been there;done that”. “Bye-bye manufacturing.”
   So toasters and refrigerators get to be manufactered with the GE label as always. But do not expect them to be made by an American. Thank your broker for that.

   Wall Street would have no qualms about choo-choo making going the same route…..IF it meant a 90 day dream come true in some future quarter.

   It is easy to hold a grenade in your hand for lengthy periods; it is difficult to do the same thing when the pin has been pulled.
   Wall Street keeps pulling the pin on Immelt every 90 days. That Jeff Immelt is still around is a miracle in the making for the United States for a change. Short term visionaries we got a plenty. Long term visionaries can be counted on one hand.

   The Financial Divisions at GE were abysmal; so they were for the rest of the world too. Housing bubble is still bursting, the credit scams are being plugged to prevent them from happening again until we forget……
   say 5 years from now. (Oil manipulation will be looked at when it is too late too). (Think Enron).

   Information is shifting to the Internet.
   TV, Radio, and Newspapers are all dogs for investors. I have never understood the need for GE to be in the NBC business, but that smelly egg is not from the Immelt era.

   In the movie “Wall Street”, the memorable line “Greed is good” is noteworthy from Michael Douglas’ ,Gordon Gekko. Has it ever been different in real life?

   Yes, in the era of Jeff Immelt and that attitude is at variance with Wall Street, the greedy….not the movie.

   Another quote comes to mind from “Wall Street”. Charlie Sheen was being warned by his father on how to live a life. Dad set the divide when he stated:

   (Carl Fox): “Stop going for the easy buck and start producing something with your life. Create, instead of living off the buying and selling of others.”

   Jeff Immelt is NOT going for the easy buck. He is creating and transforming.

   Bill Gates did the same thing; until recently. Gates story is well known.
   But recently, even all THAT money was not enough.
   He sought to “buy out” Yahoo,….forcefully if necessary. It bode unwell for Bill Gates and for us. Better he should create a new Yahoo even better than the old, than to buy and swallow a decent outfit in the marketplace. Being richest in the world did not seem to be enough for Bill Gates.
   Note: Gates would rank higher than Buffet in the Forbes idiocy ranking, except Bill Gates believes in giving his money to charity and his foundation NOW to help this planet. Otherwise, he would be richest.

   The buying and selling of others is the very story of Wall Street (movie and real life). Erie, PA is intimately familiar with the consequences. Otto Behrend turns over in his grave at what became of his PROFITABLE Hammermill Papers.

   Mr. Icahn wiped that company out of Erie.
   Mr. Icahn has bought enormous stock in Yahoo to force a sale of Yahoo.
   The buying and selling of others can be found at his desk.
   For creating, scoot over to Jeff Immelt’s desk.
   We are fortunate to have this guy.

   The smartest move anyone can do right now is BUY GE stock.
   It is at a Wall Street induced LOW…….for them to make a killing.

   The killing is not just financial for them.
   They would like the era of Immelt leadership to be closed so that a more compliant chief leads at their behest.
   I pray Jeff beats these guys at their own game.

6. George Vietze
   June 18th, 2008 at 12:20 pm

   Danny, I agree with you that Jeff Immelt is a visionary and a long term thinker in a short term game on wall street. I disagree with your recommendation to buy GE stock. The financial fallout of the credit crisis is not complete and it looks as if we are headed for inflation and possible a recession and while the global impact of a recession is not clear since places like India and China are growing significantly. Wall Street is such a non-transparant game, run by short term thinkers, as evidenced by the mortgage crisis where Wall Street devised a system to fund mortgages, REAP SHORT TERM FEES, and them sell those loans to outside investors who thought they were purchasing loans on residences that typically, in the past, had a great history of repayment, until Wall Street created wild mortgage products with little or no credit checking and equity requirements because they could sell those loans without recourse to the original lender and pass that risk on to mostly unsuspecting purchasers. There are tremendous conflicts of interst on such programs as CNBC, where the information disbursed each day has already been disbursed to insiders who profit as the public reacts to old news. The unsuspecting public is the last to know the real information until after the fact, the only safer way to invest is to purchase index and mutual funds that have good management but after their fees and the manipulation of financial statements of companies trying to beat the “short term” attitude it becomes only a game for seasoned professionals and insiders.

   I have always been viewed as a polyana optimist on this site because I have been optimistic about Erie, but the fact is that I am more of a visionary with a realistic view of how things really are. My reason for being optimistic about Erie is, in my opinion, is based upon fact.

   1. Erie has been held back economically by controlled politics of the past and the loss of manufacturing jobs that have left the area.

   2. The politics have improved ,but not enough yet ,to be totally progressive but are moving in the right direction.

   3. Harrisburg changed the law to allow gambling in Pa. and the Casino/Race track chose Erie for one of their choice locations to build a new Casino and race track.

   4. They chose Erie because Erie is the best area with an established
   base of tourists that come to Presque Isle Beaches, our 5,000 hotel rooms, many attractions and because Erie has great road access to
   over 50% of the population of the United States within 500 miles (not including Canada that is fairly closeby). Better air access is being worked on as we speak and will be available in the near future.

   5. The State of Pa. wants to upgrade the economy of Pennsylvania and improve the States infrastructure and roads and wants to use gambling funds to help fund that endeavor. The Governor wants to pass full gaming before Ohio and other states vote in slot machines.

   6. The beaches, attractions, Casino/racetrack are already here in Erie, the Airport plan is in the works already, the push to re-develop the downtown now has the State of Pa. support, prior to the new gambling concept, Erie could not get Harrisburg to look this far north, but that has changed.

   7. Erie already has a diversified base of industry, manufacturing, although ,not what it once had, a respectible amount of manufacturing jobs are already in this area, we have an insusrance industry, tourist industry, medical industry and four colleges, for a small country town that is a significant base.

   8. Our Bayfront and Convention Center area is significantly underdeveloped and is the key to future growth, if Erie can work through the local economic problems and sort out the political problems, using the incentive the State of Pa. now has to help Erie and help themselves, Erie has a good chance of turning the corner to future growth.

   That is not an easy task but it is reason for optimism compared to the past era where politics and personal agendas limited growth potential, but all that did was create the current OPPORTUNITY.

   This potential will not happen overnight but it is not BLIND OPTIMISM
   it is based upon the assets of this area, while there are still political games being played and the lack of transparency is still at play, the potential, in my opinion, is better than the potential on Wall Street, unless you are a proffessional and have inside information available.
   There is no totally safe game except maybe something like Treasury Bills, but those very small yields are subject to taxes and inflation.
   We all chose our games, none of which are safe, and we all have different risk tolerances and opinions and as they say in the world of horse racing, “That is why they call it gambling!”

   In the meantime, if Erie just continues its slow path to the future and things like full gaming do not materialize and the downtown and the Bayfront take years and years to develop it still is a great place to raise a family and for most people many enjoyable things to do, but I believe the people with the vision to invest in the future of this area have an opinion based in fact, not fantasy, although,not without risk…….but not much in life is without risk, except for people who sit back and find reason after reason why NOTHING either should be done or could be done and only have insight, after the fact. Hindsight may be clearer but vision is a lot more fullfilling and rewarding, as the napkins on my talbe remind me every day, “I never look back, I’m not going that way!”.

7. Erie's Too Small......
   June 21st, 2008 at 9:40 am

   George and Danny are really making me like this blog less and less.

   Yeah, yeah, free speech, etc. I get it.

   Peter, you are losing fans, trust me.

   Why don’t they both start their own blogs under the banner of “Outside Erie” and rant all day about whatever crossses their minds.

   We get way too off topic and are constantly re-hashing stuff about the state, gambling, tourism, etc.

   This post started talking about GE, remember?