Comments on: GE responds to Standard & Poor’s ratings action

By: Cashedup

Cashedup — Thu, 19 Mar 2009 05:52:38 +0000

I’d make a good CEO or Politician then!! Dont know why they had to realise the losses unless they are retired and are cashing in because the dividends not providing enough or they are solely relying on GE dividends for a living, I highly doubt it though – if so then they have learnt the first rule of investing "spreading your risk" and thats what GE does, spreads the risk across every sector and thats why it will survive this, the price the stock is at is an overreaction, just like most stocks were overvalued in Oct 2007-we all know that "Mr Market" in times like these runs on emotions – GE’s low price is pure emotion – the governments in all the western economies are pump priming and its the infrastructure businesses (GE in particular) that will benefit – on the equities front – compulsory super will look after this – I tell you now I’m out of cash and overweight in equities as we speak – but I dont expect anyone will listen to me, I’m not from Omaha!!!!

By: Chris

Chris — Wed, 18 Mar 2009 13:18:09 +0000

Cashedup,

You’re side stepping the point about whether those were "better investments" than other uses of that money (which I suggested). Whether "Mr. Market" is right or wrong, it’s signaling that the money could have been better allocated. You can jump into the fray and buy financials all you want (best time to buy is when they are down) but that doesn’t help those that have witnessed their equity holdings lose 70%+ as well as get their dividend checks cutoff. I have time to wait for my holdings to recover, and you seem like you do to, but many people unfortunately had to actually realize those losses; much of which was caused by "Mr. Market’s" concerns over GE Capital’s allocation of resources. I think some of it was overblown; but, there’s a lot of people that have assessed the situation and they see it differently.

By: Cashedup

Cashedup — Wed, 18 Mar 2009 09:13:52 +0000

Chris tell me a financial institution that doesnt have European or US property on their books. 1991 same bone, but it was mainly commercial property then, I watched as a bank reported the biggest loss (% of equity wise) in Australian banking history & in its 100+ year history, it came back though. Again, I’ll say it till the cows come home, while everyone on earth is saying money businesses stink, thats the time to go in and buy (Funds Management = GE’s new Money Empire).

By: Chris

Chris — Tue, 17 Mar 2009 18:36:08 +0000

Cashedup,

I’m assuming that when you mention "better at finding investment opportunities than most of us" that you’re ignoring the real-estate investments in Europe the last few years that are now the biggest question marks most analysts have? If they had used the money to pay down debt, invest in the industrial businesses, or dare I say give it to shareholders (i.e. owners), I’m sure there would be a lot less question marks right now in that regard. Heck, they could have just put that money in T-bills and been better off given all the "hype" (good or bad) surrounding those "better investments."

By: Cashedup

Cashedup — Mon, 16 Mar 2009 23:29:04 +0000

Hey Chris, I would be too concerned, so we dont get our dividends so we can go out and buy our hot dogs, GE is cashing up just waiting for the next opportunity, I would have to say that GE is better at finding investment opportunities than most of us. One thing I hope GE gets into is Funds Management, if we survive this thing, which we will, then GE will be hailed, it’ll have a name that says "we survived every financial crisis in our long history" – Compulsory Super will always be with us and financial evolution has paved the way for the survivors to come in and take over – I’m really excited about our (GE) future!!!!

By: Chris

Chris — Mon, 16 Mar 2009 13:22:23 +0000

Hi R May,

The fact that GE is even brought up in relevant discussions with the likes of "Bear Stearns, Lehmann, Circuit City, GM, Ford, Chrysler, B of A, Citigroup" indicates that something went drastically wrong. We were always told that GE’s business model would keep it from becoming like those types of companies. We were always told that the risk was "controlled." Now we don’t know what to believe and that’s the most frustrating aspect of it all. We still witnessed one of the greatest destructions of shareholder value of all times and, unfortunately, some people had to actually realize that loss. Throw on top of that the dividend decrease (which was a debacle in and of itself) and you lose even more confidence. The last week we saw what some say was a "good rally"; yet, GE the stock is still under $10. That’s pathetic.

By: RatingsBollocks

RatingsBollocks — Sun, 15 Mar 2009 06:32:04 +0000

These ratings agencies were giving AAA to those sub prime junk packages, so were’s the cred when they downgrade one of the longest standing companies in history – complete bollocks if you ask me!! – Time to turn the lights out on those ratings agencies, no pun intended!!!

By: Help

Help — Sat, 14 Mar 2009 23:19:36 +0000

Mike, so that there is no error, let’s allow GE Investor Relations to answer that question. If either my source, which I recall to be an on-line Forbes article, or my memory is wrong, I will humbly apologize! If not, then . . .

By: GE = Integrity

GE = Integrity — Sat, 14 Mar 2009 23:11:24 +0000

Agree Mr burnt, GE has been around longer than these ratings agencies and how quickly we forget hey it has been a few months, I guess as a ratings agency your beyond reproach. We’ll I just hope they are setting up the biggest financial Enquiry(Inquisition) we have ever seen then we may some of these agencies squirm.

By: Mike

Mike — Sat, 14 Mar 2009 14:26:13 +0000

I would like to know HELP’s source for the pension funding. My source says under funded by .9 Billion which is not multi billion. The supplemental pension obligation is 3 billion+ and has always been non funded. Where did you get your data?