GE

GE was one of the first 12 companies in the Dow Jones industrial average. 119 years later it’s still there!

Noting that their business is a tad old-school (read – subject to rape and pillage by the Chinese) they have decided to reinvent themselves yet again.

See this article on the subject – on.ft.com/1UOgA0f

Basically they have sold off all their ‘generic’ business units, kept their profit making units with good barriers to entry, and are now focusing growth on the deployment of IT in the industrial environment, otherwise known as the Internet of Things (IoT).

The problem with IoT is that there is no universal core technology that scales into every application

Every single one of the zillions of industrial applications needs a dedicated solution with it’s own development costs.

My take on it; GE has defied gravity for longer than anyone but their time is up.

I’d short them.