Question

Why do you think General Mills stock has underperformed in 2018? Include a discussion of the most recent quarterly report.

Why do you think General Electric has underperformed in 2018 so far?

Answer 1

General Mills stock has underperformed in 2018?

Reason

1. Higher transportation cost impacting the margins and with lowered currency operating profit guidance (1% flat to 6% down)
2. Market did not react positively to $8 billion Blue Buffalo acquisition which deal costing 25 times the $319 million of adjusted EBITDA (2017)
3. In 2018 price dropped 24% since quality result came less than expected.

General Electric has underperformed in 2018

1. Price share fall 22% in the first six month with 44% loss in 2017
2. General Electric removal from the Dow could be on the major reason behind it
3. General Electric’s lighting business, finding very difficult to find a good buyer
4. General Electric spent more than $10 Billion for Alstom Power which market feels is a stupid decision
5. GE power the part slumping conglomerate suffered a glitch in one gas turbines at texas power

Plant and the plant shut down after that this create further fall in the prices