My tendency is to avoid companies as large and diverse as GE. I prefer to invest in more "pure plays" in the high growth markets. Recognizing that 3D will permeate much of GE, how can we know how much of an impact 3D will have on GE's bottom line over the next few years. For example, I have to believe that GE's investments in energy services will be a big drag on earnings for some time. In addition, it is my understanding that the margins on windmills are declining across the industry. GE is a major player in this industry. Windmills may be going through the same cycle that solar recently went through. Lots of growth but little if any profit.
Just not clear how much of an impact 3D will have on GE for say ... the next year. And, because GE is large and complex, I tend to doubt the market will get too excited about the impact of 3D on GE until GE demonstrates that 3D/digital manufacturing will be sufficient to help turn around the company's overall performance.
If anyone disagrees with my views regarding GE/3D, please let me know.
Just to make it interesting I sold some arcam shares and bought into three Lithium mining companies. From my very limited understanding of the industry, much of the worldwide lithium production comes from just a few companies and regions. I think that like solar, China will subsidize and promote the battery industry in domestically such that worldwide battery use/production will take off. Unfortunately for China, while they can promote certain industries domestically so they can "own" them, there are only so many places that have lithium to mine. My understanding is that China is not one of these places. It is all about Chile.
So I bought some shares in all three of the major lithium companies.
I digress .. just some thoughts.
