General Electric (NYSE:$GE) is currently experiencing a two-day stock downturn – and CEO John Flannery says he isn’t surprised, adding that the company disappointed shareholders.
On Tuesday, General Electric was down 5%, which brought the two-day loss to 12%. For those who missed it, General Electric dropped 7% on Monday, making it the company’s worst session in 10 years. The decline came after a number of announcements, one of which included slashing its quarterly dividend by 50% in order to help fund a turnaround and planned restructuring.
“I’m not trying to run the company for the reaction on Monday and Tuesday or Wednesday of this week,” Flannery said. “We have a long-term plan. We have a lot of work to do. We’ve reinvented ourselves many, many, many times.”
However, there is still hope for the Boston-based company. When asked why an investor should buy the stock, Flannery pointed to the overall picture. “Is it going to happen in two months, four months, six months? No there are operational things we need to change in the company. There’s something under the hood that’s worth considering as well.”
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