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NYSE:GE

General Electric (GE)

357.02
-0.62 (0.17%)
as of Jun 18, 2026, 11:45:31 pm Market Open.
186 watching
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WATCH
Big dividend cut along with a ratings downgrade hit them hard. Their trouble stems out of their financial services unit. Meeting tomorrow with analysts on their real estate holdings and could go a long way in how they are going to survive the credit crisis. If they survived, it is certainly undervalued on what their business would be in a more stable economy, which would be a good 3 to 5 years. Wait and see.
BUY
Has been hurt because it has been lumped in with financials because of its GE Capital operation. Have about $650 billion in assets with about $35 billion of GEC supporting it. GEC is the 1st creditor and most of their assets are secured. GEC expects to be cash flow positive this quarter. Have about $49 billion in cash. Good hold for 3 to 5 years, not a trade.
COMMENT
Chapter 11 would be the last option they would go for. They have a little ways to go. You would need to see the car companies completely wiped out. Their financial services is a millstone around their neck.
DON'T BUY
Once you get into these financial issues, you don't know how deep the problems are. He would not bottom fish.
HOLD
Their big problem is their capital finance division. It's a bit of a black box, as no one knows what’s in there. Industrial side looks fine, but wouldn't Buy until you are more confident that they didn't need to raise capital.
DON'T BUY
In the longer run, he would worry about this in that roughly 40% of their business is from their financing arm. Financing businesses are not going to be treated the same as they were in the past. Their industrial business is very strong and could come back to a nice multiple, perhaps 15Xs but it is a real stretch to see their financing business come back.
DON'T BUY
Part of the finance world. Feels deceleration will probably continue for at least another 1 or 2 years minimum. This means most companies in the finance world have to sell assets. Not a “buy and hold” stock.
DON'T BUY
One of the few AAA companies left in the US but doesn't know how long that will last. A financial/manufacturing identity and both sides of the business are challenged at this time. He doesn't own any US financials at this point.
COMMENT
Not only are they suffering from their existing businesses but are also being hurt by GE Capital, which is one of their biggest businesses and throws off the most cash. He owns the AAA bonds instead, which are a better buy.
DON'T BUY
Running very well except for their financial division, which has been dragging the company down. Until that gets fixed, GE will not get fixed. Have great properties. In due time it will be a great investment.
COMMENT
(Market Call Minute.) This would be what you think the market was going to do. If you own, have a Stop.
TOP PICK
5.37% October 2037 bonds gives a 7.5% yield. There are a number of institutions that are too systemically important to fail. US government is backing them.
WAIT
Lot of moving parts and different areas they are involved in. Some very cyclical and some more resistant to economic pressures. Their plastics business is almost a benchmark of what is going to happen and this has been really challenged. A name you will always want to have some exposure to. No need to start buying yet.
DON'T BUY
Stock price is driven by their financial subsidiary. At one point it was a wonderful combination but now it has reversed. Their good businesses are being overshadowed by the bad finance business. In danger of losing their AAA rating. Have close to $100 million of commercial paper and the market is very nervous about their debt.
HOLD
Good proxy for the US economy. Expects recovery will not happen until the 2nd half of this year. Will probably trade sideways with potential of negative headlines because of their financial arm and the impact on their dividend and their AAA rating.
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