Posted on 01/20/2009 1:01:17 PM PST by Golddigger3
Google to find
Your post was useless, and even the article you didn't link to (no idea why you can't link to--or at least mention--the title of a Bloomberg article) was more or less useless.
Go troll some penny stock message board.
http://www.google.com/search?hl=en&q=pump+and+dump+sec&aq=o&oq=
Put sellers think the stock will go up.
Alert the media. LOL!
I think all the OP wanted to do was post the original Bloomberg article, but Bloomberg is not allowed on FR per copyright complaint.
Seriously ?
When I see traders at Goldman prosecuted for shorting their own securities at the same time they were selling those same securities to their own clients, PIMCO prosecuted for insider trading in Treasuries, Dick Fuld for saying BSC was well capitalized just a few days before they were taken down, etc etc, then I’ll be concerned about one small post on this website.
Until then, what you’re saying is that Wall Street can break whatever laws they want but some little guy on an anonymous forum doesn’t have free speech.
Nice.
GE is a manufacturer with the balance sheet of an investment bank. Look at its ratio of debt to tangible assets. Then compare it to Caterpillar's. This is why GE requested Federal aid, whereas Caterpillar did not, despite the fact that Caterpillar is intimately tied to the construction business, which is imploding. Caterpillar finances the sales of its equipment, which is risky enough, but GE finances the sales of everything under the sun, which means they take on the problems of other industries*. On top of that they are a big time player in the credit derivative market. When the economy is going on all cylinders, this really isn't a problem. But in a severe economic dislocation like this one, where the high single digit trillions will be lost just on bad debt related to housing, GE's in real trouble. Or at least the stockholders are.
* IBM is a huge financier in the computer business, but at least it sticks to computer-related fields. GE does *everything*.
And what info would that be, exactly?
Sorry, Obama's fairness act does not allow posting of information in threads.
As requested.
Even money that GE gets broken up....the units that “make stuff” actually produce a product...no way the market can value them fairly when tied to the whole financial segment mess...
You are out of your gourd,
it’s an article from a SeekingAlpha contributor who is commenting on publicly accessible options positions, been on the wires for over 4 hours.
http://www.interactivebrokers.com/optionsCommentary/
http://news.google.com/news?hl=en&safe=off&client=firefox-a&rls=org.mozilla:en-US:official&hs=zJ4&q=GE%20options%20lose%20half%20value&um=1&ie=UTF-8&sa=N&tab=wn
From a stockholder's standpoint, it doesn't matter that GE's assets have a value greater than zero. The real question is always what the liabilities (including off-balance sheet liabilities) are, compared to the assets. Stockholders only get what is left after the liabilities are settled. Right now, option activity on GE's stock is saying that the assets are worth less and the liabilities are bigger than anyone thinks today, never mind several months ago.
What’s to stop GE from spinning off it’s finance arm and then letting that new, independent company go BK holding ALL of it’s own liabilities?
It's not speculation to say much of the vast profits came from the financing arm, and nobody really knows what the quality of the assets in that "bank" are. Yes, GE also makes stuff, and absent it's basically having its own massive non-transparent bank, it would be a good buy imho.
Debt is issued with standard provisions to protect debtholders (and to keep rates low for borrowers). One of those items is typically that corporate reorganizations like spin-offs must be approved by debtholders.
Looks like a Short Raider, beware the Short, in a bear market they are after anything that can make them money.
Unlike shorts in a bull market or bulls in a bull or bear market who are out to do anything that can lose them money. /s/
Everyone in a market is trying to manipulate the market to make money. - Michael Lewis.
Once you have that insight you will stop trying to pass moral judgment over some market operators as opposed to other market operators.
In salary alone, not counting benefits, etc., that is a savings $1.8 BILLION a year.
USA TODAY
Stocks pounded by weak earnings reports
By Stephen Bernard And Tim Paradis, AP Business Writer
NEW YORK — Stocks skidded Friday for a second straight day as weak corporate earnings reports stir fears that the recession will be deeper and longer lasting than some investors had predicted.
General Electric’s fourth-quarter numbers made investors uneasy. While the 46% drop in earnings met Wall Street’s lowered expectations, investors are worried the conglomerate will reduce its dividend. They are also nervous the company could lose its coveted ‘AAA’ credit rating because of the recession that has crimped lending at GE Capital and hurt its industrial and entertainment businesses. The stock, a component of the Dow Jones industrial average, fell 8%.
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