Thanks for your questions. Many of the questions we received from our readers focused on a handful of similar topics. The answers below address the issues you raised.
Will GE collapse because of GE Capital?
No. GE has a conservative financial services business originating mostly secured or asset-backed loans. That has resulted in lower loss rates and loan-loss reserve ratios than those of the largest U.S. banks. The company has made net income of $7 billion in financial services year to date, making it one of the most profitable financial services companies in the world. See Mike Neal, president and chairman of GE Capital, and watch Bill Cary, chief operating officer, talk about how GE Capital has been reorganized.
The stock has plunged more than the market as a whole, and nobody seems to have the answers.
Our stock price reflects the ups and downs of a highly volatile market. The S&P 500 is down over 49% this year (as of November 20, 2008) and many competitors and peer companies have experienced share declines similar to ours.
There are concerns in the market about our exposure to financial services. We have taken actions to keep the Company safe. These include reducing leverage and long-term debt needs to solidify our Triple-A-rating and raising an additional $15 billion of cash through an equity offering. This is money in the bank and gives us additional protection. Finally, the Board is committed to a plan to maintain the dividend at $1.24 for 2009.
Read the complete list of Q&As here.
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DJ news that came out around 6PM 11/21 Friday saying GE files mixed Sec shelf, which includes senior debt, subordinated debt, common stock, warrants, delayed delivery contracts and guarantees. My question is the common stock. Is this in additions to the Oct stock offering, which will further dilute the stock?
Per your request we have submitted specific questions and have received generic doublespeak. PLEASE supply specific transparent answers ie…what is Ge Capital leverage 8 to 1 or 10 to 15 to 1 as reported.What are the off balance entities their purpose and dollar values.Why doesn’t GE post GE CAP.weekly positive and negative transparent results to calm and inform the marketplace.You must agree that a different approach to the marketplace is required to build some real support in the stock.(TRANSPARENTCY)If things are good show us ,if they are bad inform us before the blogs and Barrons does.
Thank you for your time !
What will be the future strategy of GE Capital after merging almost all financial units of GE under its umberalla,
Is it gonna Citi way, means Layoffs of 20-30% employees
Anything you could offer on the GE Capital PINES would be appreciated – do you expect the price drops to be temporary ?
Hi Dear Gary
The following are my questions..
1. Would GE Aviation Service consider it a good buy of ILFC…expanding the fleet of GECS, why and why not? Since Jeff is looking for cheap price tag…
2. Relatively, if new GE capital organization ops is head heavy Vs. other operations, infrastructure, energy…? What are comparision of the earn per employee ?
3. Have the press release from the Brusell GE Interantional Ops office spokewomen of the SWF or JV pre-approved ? Media discipline…How to avoid the repetitive event that had caused downfall of GE share by $1.61…two weeks earlier Jeff spoke at the business dinner in Spain that caused a free fall…
4. Beff up business before going on the block…the I&C need to be valuable, profit generation befor any buyer stepping forward..so as the GE credit card…talking perspective buyers do not help the situation
I am confident that GE can once again to strengthening and breakthrough to "bring good things to live"…
Sincerely
Yi-Chen
this blog is good
Simply put … why haven’t Jeff Immelt (CEO) and Keith Sherin (CFO) been fired???
My question is directed at Mr Cary, sir, we are looking at selling the $30b Private Label Credit Card business in the US, what is the difference between these products and the other Private label credit card products we have around the globe?
I strongly believe that the creation of this blog is a great and innovative step forward in GE’s communication to all type of shareholders and potential investors, eventhough room for improvement would lay in starting to back all GE statements, responses or arguments on this site with unquestionnable financial nbs.
Can anyone at GE comment on the obvious transparency issues that continually seem to confound the company. Why were shareholder questions regarding GE and Iran quashed at the last shareholders meeting? Why was the webcam turned off when questions regarding offensive programming on NBC were raised by concerned investors?
If this is a real blog, questions like this should be answered, not selectively excluded.
Your pal,
Rob
What a joy it is to have this true GE message board! For once GE shareholders and potential shareholders, can finally get past the untruths and innuendos that have been falsely circulating about GE.
Rob: Answers to your questions on NBCU and GE not doing business in Iran are available, at any time, on our website. The direct link is: http://www.ge.com/news/our_viewpoints/index.html
We think that section of the site is an important, transparent way to share our views on important policy issues.
Peter O’Toole
GE
Peter, Thank you for taking the time to answer my question. Perhaps GE is reinventing itself and that would be good. Time for more focus on people v profit.
Your pal,
Rob
I would like to first thank GE for this portion of their website as well as having the guts to make the tough decisions that Mr. Immelt has had to publicly make/face over the last year. I will continue to be a long-term GE shareholder and I believe that GE will see much better days ahead.
My question to GE is this, I understand you have made the tough, yet right, decision to freeze the dividend (a bold move in my opinion considering the volatility GE is facing in many markets). I think what many current GE shareholders would take comfort in is a possible forecast of what you see in terms of dividend for 2010 and beyond. It appears that GEs ability to finance itself (especially from listening to Mr. Immelt’s many public appearances) and conduct business that will make it profitable in the long-term is certainly on pace. Have you begun forecasting the dividend potential post-2009?
Thank you,
Chris
With the recent stock market meltdown, what is the status of our pension fund? We are probably OK but must have lost a considerable amount.