Jim Cramer Is Sticking With General Electric
Jim Cramer says struggling General Electric GE has been a "huge disappointment" since he bought the stock for his charitable trust, but says investors should give incoming CEO John Flannery a shot at turning things around.
"I like the set-up. I'm not abandoning [the stock]," Cramer said in an exclusive conference call with members of his Action Alerts PLUS club for investors.
Flannery, a career GE executive, is set to take the CEO's chair on Aug. 1 from Jeffrey Immelt, whose popularity with investors waned as GE shares moved sideways in recent years. Activist Nelson Peltz's firm Trian Fund Management took a stake in the firm in 2015 and pushed for improvements. Although Trian didn't explicitly demand Immelt's departure, GE announced plans earlier this year to cut $2 billion in costs.
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This article was written by a staff member of TheStreet.
