Posted on 10/01/2008 7:13:49 AM PDT by BenLurkin
General Electric (GE) is getting hit hard today, with the only news catalyst being an AP story on the company’s inability to sell its private-label credit card business.
It’s quite possible that GE’s downward move may just be a result of more hedge fund liquidation maneuvers that have rolled through different stocks and sectors recently. GE’s stock has been resilient since mid-June, holding the $27-28 area, but that level has now broken. Volume is running at more than double the daily average traded with almost two hours left in the trading day.
The Bottom Line
Without much to go on, long-term investors will need to regard this as nothing more than rumors at this point. The company has a 4.40% dividend yield, based on last night’s closing stock price of $28.16.
General Electric (GE) is a a “Recommended” dividend stock, holding a Dividend.com Rating of 3.5 out of 5 stars.
NBC has great results, but is a small fraction of GE’s earnings and/or profits.
GE Finance is very profitable and works with Airlines as an example and finances Boeing Jets with GE’s engines.
Hmmm, current Money Market Yields - 2%
GE dividend Yields: 5%
I also like T - 5%
Buy Low
“NBC has great results, but is a small fraction of GE’s earnings and/or profits.”
NBC-Universal is a horrendous drag on the stock price...it is consistently one of the poorest performers of all of GE’s divisions.
These are the BIG THREE that need to get bought-out by conservatives to ‘flush out’ the liberal cancer spreading in the media:
1. THE WALT DISNEY CO (NYSE: DIS).... ABC Television
2. GENERAL ELECTRIC CO (NYSE: GE)..... NBC Television
3. NATIONAL AMUSEMENTS INC (Privately Owned)... CBS Television
*Media mogul Sumner Redstone
"Fairly" is a somewhat ironic choice of words considering that supposed racial/class prejudice caused "unfair" lending practices, which caused politicians to force people to underwrite - "people" somehow always ending up being middle-class taxpayers and consumers - "fair" financial transactions. And here a guy like me, who doesn't really want to help bail out everyone and their pet lobbyist(s), gets called an idiot for having reservations about the mother of all wealth transfers, even while governmentally-accredited thieves like Chris Dodd, Barack HUSSEIN Obama and Barney Frank are not only NOT wearing orange jumpsuits today, but are going to profit (in all senses of the term) even while I'm being insulted by a nominal fellow conservative. Damn, buddy, that just doesn't seem "fair."
Biblically speaking, the original whine about "fairness" was lodged by Satan (not coincidentally the original arrogant angel of "light" who was going to bring "change" to the world), and I have come to view the word with as much suspicion as "bipartisan," "improved" and "free."
Mr. niteowl77
GE is widely diversified in the Aviation Inustry, it was a big shame when the GE/Honeywell merger was prevented by the European Community. That would have made GE a much bigger player in the aviation leasing division.
The low price of GE stock has made it a great day trader special. I think that is the main reason for the big price shifts from day to day. I hope to pick up a bunch of shares during this volatile period of ups and downs myself.
I’m thinking about buying some GE when it dips below $3.00.
The boys and girls at NBC and MSNBC are doing their best to get it there.
What I think happened yesterday was traders were moving investments into safer areas, which is why the DOW and TSE showed a partial recovery from Mondays slide. Yesterday media was reporting a partial recovery, but they never bothered to look at overall trading, which was a loss. DOW and TSE only represent an average of the 250 top markets, which is what traders were moving funds into from more risky stock. This caused a rise in those markets, which media was calling a "partial recovery".
Now today you are seeing traders cashing in on those gains, minimizing Mondays losses. Sneaky.
We aren't ordinary people. I've come to conclusion over the past few days that I also am a "fat cat" because I worry about loosing money that I worked hard all my life for and invested.
Those traders on the floor don't represent me or the brokerage I deal with, heck no, those are the "fat cats" people, those things they carry around are tied directly to the computer on the fat cat's desk, which fat cats bark out orders into which the traders carry out on the floor. My broker has to run from his office, fly to NY and process my requests in person. /s
I worked for GE, I know what businesses they are in (or at least, most of the ones they were in.)
They are not the same company that I used to work for.
Good move. bond markets are about the safest place to be right now. looks like you saved almost $10 a share you would have lost had you waited till yesterday.
Countdown to Bill O’Reilly taking credit for it.
GE did not invest in any Mortgages - AAA or subprime.
Inlight of our current INTERNATIONAL CREDIT crisis, the price for GE might be “fair” and a BARGAIN!
Quote:
GE Defends Health as CDS Spreads Widen, Shares Fall
By Rachel Layne and Shannon Harrington
Oct. 1 (Bloomberg) — General Electric Co. said it has been able to sell corporate paper and fund operations without tapping bank lines, seeking to quash speculation that led to a surge in its credit default swaps and a slump in the stock.
``We see no reason for the defaults widening,’’ Fairfield, Connecticut-based GE said in a statement today. ``Despite current market disruptions, our CP funding has gone smoothly. We have over-funded every day, including today, with good demand for our paper in term maturities.’’
Chief Executive Officer Jeffrey Immelt last week said 2008 profit will be less than previously predicted, the second time this year he cited turmoil in financial markets in lowering the forecast for the second-largest U.S. company. GE today repeated Chief Financial Officer Keith Sherin’s Sept. 25 comment that the $62 billion in bank lines backing up its corporate paper will ``absolutely not’’ be tapped.
Credit-default swaps protecting against a default by GE Capital Corp. for five years climbed as much as 125 basis points to 740 basis points and last traded at 700 basis points, according to broker Phoenix Partners Group. An increase in the contracts, used to hedge against losses or to speculate on creditworthiness, suggests a decline in investor confidence.
GE fell $2.28, or 9 percent, to $23.22 at 11:14 a.m. in New York Stock Exchange composite trading, as Deutsche Bank AG said profit will be hurt by ``deterioration’’ at its financial- services unit.
Commercial Paper
General Electric last week suspended its stock buyback, shifting capital to protect its dividend and AAA credit rating. The company said it has slashed its commercial paper to below $90 billion, a goal Sherin announced last week to investors.
``I’ve seen no evidence they haven’t been able to roll CP,’’ said Ricardo Kleinbaum, a credit analyst at BNP Paribas in New York. ``They can roll CP not only in the U.S. and Europe, but throughout emerging markets. They have no daily maturities and they market directly to individual customers. They’re not going to be subject to the whims of investors that others are.’’
Sure, and my Mom worked there in 1943.
So what?
Like I said, its not the same company I worked for. I can no longer hold their stock.
It’s a matter of principle for me.
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