General Electric: Selling The Nuclear Business Is Good For Investors

Penney Vanderbilt and KC Jones: All About Railroads

SeekingAlpha.com

Summary

The commercial nuclear business is less than 1% of corporate revenues.

Worldwide competition exists that presents a challenging market for GE.

No new US projects are on the horizon.

Better uses of capital from a nuclear business sale exists.

Investment Thesis

There have been a few surprises since I wrote a Seeking Alpha article about the General Electric Company (GE) entitled “General Electric: A Long Slog to Recovery” in November. New issues include long-term care liabilities, WMC mortgage risk and SEC investigations. Recovery is still a potential but more business changes are needed.

The past six months have continued to punish the stock:

Source: Yahoo Finance

CEO John Flannery has announced, in numerous forums, that GE is in the process of disposing $20B+ of industrial organizations. Presently included in the disposition process are Industrial Solutions, Value-Based Care, Aviation platforms, Current & Lighting, Distributed Power, and Transportation…

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