Tag Archive: GE


Tired of screaming talking heads?

Are you just done … with polemics?

Want real news that is more than 24-7-365 bashing of Donald Trump?

How about real-time information, which is 100 percent relevant to at least 54 percent of Americans who constitute the nation’s “investor class”?

Digging deeper one finds that 73 percent of those with bachelor’s degrees and above, and 83 percent of master’s degrees and above, own publicly traded company shares or stock-based mutual funds … many in employer 401K plans or IRAs.

Buy Low, Sell High!

With all of these stats in mind, Almost DailyBrett welcomes you to the best network on television: CNBC.

What ever happened to critics who proclaimed that around-the-clock Wall Street market coverage would never work?

They are the same naysayers who proclaimed that 24/7/365 sports wouldn’t fly when ESPN was launched in 1979.

How did either of these forecasts work out?

Just as ESPN’s proven business model fostered a plethora of imitators (i.e., Fox Sports, CBS Sports, NBC Sports Network), the same is true with CNBC, born in 1989.

Two years later, CNBC’s parent acquired Financial New Network. There was obviously moola to be made from those who care about global markets, particularly their NYSE and NASDAQ investments.

Never-shy-about-about-exploiting-an-opportunity, Rupert Murdoch, debuted CNBC’s major competitor Fox Business in 2007, including raiding CNBC for proven on-air talent (i.e., Maria “The Money Honey” Bartiromo, Neil Cavuto, Liz Claman …).

Fox Business now leads in the Nielsen Ratings for cable business networks, just as Fox News is on top for cable news channels.

Almost DailyBrett believes that competition makes everyone better, and contends that CNBC can take full advantage of the opportunity that comes from adversity.

Can’t Quantify PR?

Working for the Semiconductor Industry Association (SIA) in the mid-1990s, your author as director of communications was interviewed each month on the chip industry’s book-to-bill ratio … or what is the relationship between the booked orders and the already billed orders.

One always wanted the former to be higher than the latter.

As a director of Corporate Public Relations for LSI Logic, Almost DailyBrett booked our CEO Wilf Corrigan on CNBC whenever we had good news to report, provided the markets were open and trading.

One particular time our stock was trading at $86 per share when the interview began. Three-or-more minutes later (an eternity on television), LSI Logic shares had jumped to $89 per share or x-millions more in market capitalization (number of shares x stock price)

And who says, you cannot quantify effective public relations?

The direction of a company’s shares can head to the north, but to the south as well, thus resulting in the term for a stock being a volatile, “Dow Joneser.”

Recently saw a sell-side analyst explaining on CNBC why he downgraded Nike from a buy to a hold with a lower sales target … the stock sold off during the interview. That is the awesome power of an analyst being interviewed on a financial news network.

Almost DailyBrett contends from years as a loyal viewer that CNBC covers real news: What’s happening with global markets, consumer spending, newest gadgets and gizmos, trade wars, Brexit, Federal Reserve rate hikes or cuts/quantitative tightening or quantitative easing ….

Is CNBC perfect? Far from it. Yours truly rolls his eyes whenever yet another report focuses on East Coast dino-tech legends General Electric (GE) or Itty Bitty Machines (IBM). The former is Sears in drag, and the latter is just a few steps further back on the same bridge to nowhere.

Having said that, there is a healthy consistency that comes from Bob Pisani from the floor of the NYSE and Bertha Coombs from the NASDAQ.

Who can avoid smiling when Jim Cramer is throwing bulls and bears on “Mad Money?” David Faber (a.k.a. “The Brain) is always solid with his reporting.

Carl Quintanilla, Morgan Brennan and John Fortt are especially credible with the coverage of technology to start the day. Wilfred Frost and Sara Eisen put a capper on the trading day by hosting “Closing Bell” with Michael Santoli providing analysis of the just competed trading day.

If you want wall-to-wall about what is wrong with the relationship between Donald and Nancy, there are networks, which can provide you with all the gory details on a 24/7/365 basis. Go for it.

And if you can’t wait for another update on the no talent Kardashian family, CNBC is not your cup of tea … and never will be. Thank the good Lord.

https://news.gallup.com/poll/211052/stock-ownership-down-among-older-higher-income.aspx

https://www.marketwatch.com/story/the-amount-of-americans-not-saving-for-retirement-is-even-worse-than-you-thought-2017-02-21

https://www.nytimes.com/2018/02/08/business/economy/stocks-economy.html

https://www.cnbc.com/

https://en.wikipedia.org/wiki/CNBC

https://www.forbes.com/sites/markjoyella/2018/10/02/lou-dobbs-maria-bartiromo-lead-fox-business-to-big-ratings-win/#4e449fd924bf

https://almostdailybrett.wordpress.com/2018/12/20/how-fox-news-keeps-on-winning-the-ratings-war/

 

 

 

 

 

 

 

Five years ago Hewlett-Packard (NYSE: HPE) was kicked off the Dow Jones Industrial Average, replaced by Visa.

Three years ago, AT&T (a.k.a., The Phone Company) was ingloriously removed from the index of 30 share prices, substituted by Apple.

And just last month, General Electric (NYSE: GE) was unceremoniously ushered off the exchange for Walgreen Boots.

Will Itty Bitty Machines (NYSE: IBM) be the next Dinosaur Tech heading for Dow Jones extinction?

Flintstones vs Jetsons

Under legendary CEO Jack Welch, GE was the most valuable (market capitalization) American company in 2000. The company was one of the founding companies of the Dow Jones Industrial Average in 1896. General Electric was a consistent standard on the exchange since 1907, 111 years.

What have you done for us lately, Fred and Wilma Flintstone? GE was replaced on the Dow Jones two weeks ago by a drug store company? How embarrassing.

Almost DailyBrett earlier wrote about companies that are absolutely rocking (i.e.,  Apple, Amazon, Facebook, Netflix, Google, Salesforce.com), metaphorically packing stadiums as opposed to those reduced to playing “greatest hits” at county fairs and desert casinos (i.e., Intel, Cisco, Dell).

These latter companies were/are directly tied to the mature PC market and thus became fairly valued with limited prospects for investor growth unless and until they credibly changed their story with compelling new information (e.g., Apple from Amelio to Jobs2 to Cook) & (e.g., Microsoft from Gates to Ballmer to Nadella).

Apple was on the precipice of bankruptcy in 1997; now the company is the world’s most valuable at $912 billion. The Wunder corporation may be first to ever to achieve a $1 trillion market cap (share price x the number of shares).

Microsoft has cleverly reinvented itself as the market leader in the cloud, even though the PC software company was late to the party. Macht nichts. MSFT has a $762 billion market cap.

Apple, Amazon, Facebook, Google, Netflix and Salesforce.com constitute the 21st Century version of the Jetsons.

Conversely, AT&T, GE, Hewlett-Packard and IBM are the Flintstones.

What Are Their Winning Narratives?

Having worked in corporate Silicon Valley public relations for more than a decade, Almost DailyBrett understands the virtue of championing a winning narrative.

What is your company’s raison d’etre?

How does it make the legal tender?

How is the company positioned in the marketplace against ferocious competitors?

What is its competitive advantage?

What is its legacy of results?

What are the prospects for reasonable and achievable expectations for shareholder joy?

For the record, Almost DailyBrett owns shares of Apple (NASDAQ: AAPL) and Salesforce.com (NYSE: CRM).

Both companies have delivered. Both are leaders in their respective fields. Most of all, your author understands their business strategies – lead in consumer innovation and services; provide selected software via the cloud to business customers).

Investing or Gambling?

When you understand how and why a company makes money then markets are investing, not gambling.

What is the winning narrative for GE? The company is restructuring yet again. Give it up J.C. Penney. Forget it, GE.

Tell me more about the business strategy for AT&T. How will it beat Verizon? Your author doesn’t know either.

Your author loves his Lenovo Ideapad. Who commercialized the PC? IBM in 1981. Reagan was president. “Watson,” can you help?

HPites love the 1937 story of HP founders William Hewlett and David Packard and the Palo Alto garage.

If the two gents could see their creation in the post-Carly Fiorina era, they would most likely would be turning over in their respective graves.

When contemplating these four Dinosaur Techs – AT&T, GE, HP, IBM — in a Jurassic Park era, the hardest questions are also the most basic: How do these companies make money? What product defines their respective businesses?

In stunning contrast, Apple is the #1 company in the world, defined by game changing innovation (e.g., iPhone X) and services (e.g., Apple Music).

Amazon is the #1 digital-retailer in the world with 100 million Prime memberships.

Facebook is the world champion social media company with 2.19 billion subscribers.

Google is the #1 search engine and developed the smart phone Android OS.

Netflix is the #1 digital-streaming-video company (at least for now) with 125 million subscribers.

Salesforce.com pioneered SaaS (Software as a Service) and is a leading-business-software-via-the-cloud provider.

Quick: Can you name a signature product/service directly associated with AT&T, GE, HP or IBM?

Being a jack of all trades, master of none leaves investors will absolutely … nothing.

https://www.cnbc.com/2018/06/19/walgreens-replacing-ge-on-the-dow.html

https://almostdailybrett.wordpress.com/2011/07/21/what-happens-when-the-music-stops/

 

 

Believe it or not chief executive officers are human, even CEOs that have attained rock-star status.

From Lee Iacocca of Chrysler, Jack Welch of GE and Steve Jobs of Apple, these names became dangerously synonymous with their company brands. Investors, media, analysts, customers, suppliers, partners and employees couldn’t get enough of them.

But what happens when these rock stars demonstrate their inevitable mortality? What happens when nature runs its course and the meeting with the grim reaper gets closer-and-closer…or actually occurs?

Is it proper to plan for the CEOs demise when she or he is successfully running the ship? It would be foolish not to.

Consider the Stuttgart, Germany sales call made by Texas Instruments chief executive officer Jerry R. Junkins on the morning of May 29, 1996. Junkins suffered a major heart attack and immediately died. There were no prior indications of heart issues with Junkins…and 58 is way too young to pass away.

junkins

The sudden passing of Junkins – maybe not a rock star, but certainly beloved by all who knew him at Texas Instruments – required a middle-of-the-night, all-hands-on-deck fire drill. The TI Board of Directors held an immediate conference call, designated Vice Chairman William “Pat” Weber as the interim CEO and started the process of searching for a new chief executive. The Investor Relations Department contacted the NYSE and asked for trading on the company stock (NYSE:TXN) to be halted until the Street had proper time to digest the news. They also made the necessary 8K filings (material event) with the SEC. And of course, the PR Department prepared the necessary news release and conducted media briefings announcing to the world Junkins’ passing, the selection of Pat Weber as the interim CEO and the upcoming search process.

Eventually Texas Instruments started trading again. Weber and the TI team picked up as best as it could for Junkins. And the board eventually selected a permanent CEO Tom Engibous. The key was that TI had a deep bench and a plan for succession…and that plan has been a classic example of successful crisis communications.

Many have wondered if the same would apply to Apple with its rock star CEO Steve Jobs when as the Economist headline stated, “The minister of magic steps down?” The answer so far is favorable to Apple…at least judging by the performance of the company stock (NASDAQ: AAPL)

The stock closed last Wednesday at $376.18 just before the company announced at the close of market that Jobs was going to permanently step down because of health concerns. AAPL opened at $365.08 on Thursday and closed at $373.72. The equity finished the week at $383.58 or $355.6 billion in market cap, actually higher than before the announcement of Jobs’ stepping down as CEO. Why was that?

One reason may be attributed to the fact that Jobs’ health concerns are not new to the Street and his eventual demise may have already been baked into the stock. He has taken medical leave three times, once for pancreatic cancer surgery and another time for a liver transplant. In his stead, Apple’s chief operating officer Tim Cook has assumed the leadership role three times and the Apple board is impressed as The Economist describes with his “remarkable talent and sound judgment in everything he does.” Jobs remains as chairman.

jobskeynote

So obviously Texas Instruments performed well in a fire-drill, aided by advance planning. Likewise, Apple (so far) has not been negatively impacted by the still-shocking-news that Jobs has relinquished the day-to-day responsibilities of running Apple.

Taking these two examples of well-executed CEO succession and others that come immediately to mind, what are some public relations/branding strategies to plan for an effective transition, thus preserving the company reputation and continuing to enhance brand equity?

Repeatedly Contemplate Succession. Even though “succession” is a very touchy subject in most companies, particularly for long-time CEOs nearing retirement and who detest the R-word, you still need to think about this inevitable day. The board of directors will make the call, but you need to cognizant of the strengths and weaknesses of all of the company’s executives. There is a good chance that one of these will serve as the chief executive at least in an interim capacity.

Put Your Bench Players Into The Game. Think of your CEO as the team head coach and the key executives as the assistant coaches. CEO time is valuable. Does the CEO have to be made available for every media interview or every financial conference? It makes perfect sense to show off your upcoming Wunderkindern. This technique also gives you an opportunity to assess who are your best performers before media, analysts, employees etc. in telling the company story. There may also be cases in which the CEO is not available or the EVP or VP may have deeper insights into a particular facet of the company’s business.

Have Your Facts Straight in Advance. Always have a complete bio and background materials at your ready disposal just in case the CEO suddenly passes away or steps down. Maintain a similar repository of information about the other key executives, particularly if one of them is selected as the interim chief executive. Be familiar with the workings of your board of directors and HR Department and understand how they make decisions.  Be ready to learn as much as possible as fast as possible, if the Board of Directors goes outside the family to select a new chief executive.

Never Say Never.  At LSI Logic, we maintained a policy of never engaging in a public discussion of the internal working of the company’s Board of Directors. We made one exception. When it came time in 2005 for Chairman/CEO Wilf Corrigan to step down at 67, we wanted everyone to know that he had been working with the board on his succession for two years. Our strategy was to head off at the pass, any speculation that his retirement as CEO was anything but an orderly process involving both Wilf and the board.

Second-Person Plural, Not First-Person Singular. The best chief executives never use the first-person singular in their internal or external communications (Me, Myself, I). Instead, they employ the second-person-singular (We, Us, Our) to emphasize the team that makes the company’s success possible. The same applies to company chief lieutenants as well. If there is more of a team culture, rather than a cult of personality, it makes it just that much easier to eventually continue business as usual when the time comes for a CEO to move on or the Grim Reaper comes-a-calling.

http://finance.yahoo.com/q/hp?s=AAPL

http://www.nytimes.com/1996/05/30/us/jerry-r-junkins-58-dies-headed-texas-instruments.html

http://www.ti.com/corp/docs/company/history/timeline/key/1990/docs/1996junkinsdies.htm

http://www.ti.com/corp/docs/company/history/junkins.shtml

http://en.wikipedia.org/wiki/Lee_Iacocca

http://www.businessweek.com/1998/23/b3581001.htm

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