Wednesday, June 20, 2018

GE Getting Dropped From the Dow Is a Good Thing For GE

(CNBC) General Electric shares were lower early Wednesday, a day after news that the industrial conglomerate would be replaced on the Dow Jones industrial average by Walgreens Boots Alliance.

Now to me, I think this is a good thing. They no longer have to worry about keeping a track record of being a Dow company. They can breathe and fix themselves. Without needing to please others, which they should have been doing all along. And I think they have already begun based on the most recent interview with the CEO.

Also, this is a perfect example as to why short-term news doesn't matter. Let's think about this. Does begin dropped from the DOW affect GE's operating business at all? No. Will it have an impact on the operating performance of the future? No.

But I get it. Everyone would rather be a part of the club than being kicked out of it. But this has no effect on GE's business so to me it's all just noise.

If it drops low enough, there might be even more opportunity. What do you think?



Submitted June 20, 2018 at 08:01AM by sisumoney https://ift.tt/2K3Du5d

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