GE Isn't a Stock to Own Right Now: Fieldpoint's Dawson

The transcript discusses General Electric's (GE) financial challenges, particularly its struggle with inflationary pressures and inability to pass on cost increases to customers. Despite beating EPS consensus, the numbers were already significantly reduced. GE's renewables business faces customer delays due to high prices. In a late-cycle market, GE lacks the desired qualities such as strong cash flow, balance sheets, and pricing power. The company has high leverage and weak earnings quality, making it a less attractive investment option.

What was a significant factor in GE's earnings appearing to beat expectations?

• Increased sales in the renewables sector

• A 60% reduction in consensus estimates

• Successful cost-cutting measures

• Strong pricing power

Why are GE's customers in the renewables sector delaying purchases?

• High prices due to inflation

• Regulatory changes

• Improved competitor offerings

• Lack of product availability

In a late-cycle environment, what qualities are investors typically looking for in a company?

• Low pricing power and high debt

• Strong free cash flow and balance sheets

• Rapid expansion and high risk

• High leverage and weak cash flow

What is one of the financial weaknesses of GE compared to its peers?

• High free cash flow

• Strong earnings quality

• Low leverage

• High leverage

What does GE's inability to pass on inflation indicate about its pricing power?

• It can easily adjust prices

• It has weak pricing power

• It has strong pricing power

• It is unaffected by inflation