Analyzing GE Stock – Business Units
Analyzing stocks for certain companies can get really complicated. This is especially the case if you are doing a complete fundamental analysis. This is especially the case for a company like General Electric (GE). They have very large business segments that are worth billions of dollars in of themselves.
Whenever you are learning stock market basics, they just tell you to analyze the company financial statements. Once you get into more advanced analysis techniques, you have to dig deeper into each business unit.
In GE, they have 5 major segments. They have the energy infrastructure, technology infrastructure, NBC Universal, GE Capital and Home & Business Solutions segments. Combined, these segments brought in $150 billion for GE in 2010.
Within each of these segments, they have a profit and loss report. Each of these business units also has their own CEO and Presidents. This enterprise is that big. They also have multiple Board Vice Chairmen.
You almost have to do a fundamental analysis on each segment to make any sense of this company. That is what advanced analysts do. They tear apart the financials to find out what is really going on.