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Trains editors' No. 2 story of 2017

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  • Member since
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  • From: Texas
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Posted by PJS1 on Saturday, December 30, 2017 12:22 PM

Steve Sweeney
Is GE Transportation's pending sale: http://trn.trains.com/news/news-wire/2017/12/29-top-10-no-2

What say you to that?  ~Steve S. 

The most important point is not whether GE makes money in the locomotive business.  It is how does the locomotive business perform compared to the company's portfolio of other business lines?  And could GE realize better outcomes by selling the locomotive business and investing the  proceeds in a business that is more likely to enhance its consolidated corporate performance?

The GE Executive Team appears to have realized that GE is over extended, and it must slim down if it is to remain a viable entity that enhances the wealth of its shareholders over the long run.  Which is the primate objective of a business!

Rio Grande Valley, CFI,CFII

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Posted by Firelock76 on Saturday, December 30, 2017 11:41 AM

Steve, I think Thomas Edison and J.P. Morgan would think the current crowd at GE were absolutely insane for unloading a proven money-maker for the company, even if it's not making as much money as they'd like at this time. 

Maybe it's just as well.  If the people running GE don't understand the locomotive building business maybe they should sell it to someone who does before they wreck it beyond repair. 

And maybe whoever buys it will re-name it ALCO, and things will be as they always should have been.

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Posted by tree68 on Friday, December 29, 2017 5:41 PM

NorthWest

The whole thing looks like a short term decision about a very long term cyclical business that has traditionally done well.

Pretty much how the business world seems to operate these days...

LarryWhistling
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Posted by NorthWest on Friday, December 29, 2017 5:34 PM

The whole thing looks like a short term decision about a very long term cyclical business that has traditionally done well.

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Trains editors' No. 2 story of 2017
Posted by Steve Sweeney on Friday, December 29, 2017 3:24 PM

Is GE Transportation's pending sale: http://trn.trains.com/news/news-wire/2017/12/29-top-10-no-2

What say you to that?

 

~Steve S.

 

Steve Sweeney
Digital Editor, Hobby 

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