i just listened carefully to the GE CFO on CNBS

i am one of those, right here at TT, who has blasted GE for years, with emphasis on GE CAPITAL. this morning i listened to a 30 minute interview with the impressive CFO on CNBS. there was plenty of tough questioning and many frank responses. unless he was outright lying about easy-to-check-numbers there will be NO liquidity meltdown at GE. i think i understand enough about cash flows and reserves and debt maturities and short and long term funding needs and availabilities to say this: GE is NOT going BK or anywhere close to it, imho. i have been bearish on GE for four years plus. but, that was then and this is now. comments?

In my opinion, buying highly leveraged, less than transparent financial stocks in this environment is the type of mistake that can kill value investors. Ask Bill Miller. I'm not saying you're wrong. I'm just saying that the chances of being 100% wrong, and quickly, are far to high for my comfort level. All these stocks are potential land mines. If they survive, they're great buys. They can easily blow up over night, however. I view GE as a perpetual option. A buy there is a sunk cost. If it plays out, great. If not, well, you'd better not have bet big on it. Mark

Isn't he the one who said the dividend would not be cut?

i am one of those, right here at TT, who has blasted GE for years, with emphasis on GE CAPITAL. this morning i listened to a 30 minute interview with the impressive CFO on CNBS. there was plenty of tough questioning and many frank responses. unless he was outright lying about easy-to-check-numbers there will be NO liquidity meltdown at GE.

i think i understand enough about cash flows and reserves and debt maturities and short and long term funding needs and availabilities to say this: GE is NOT going BK or anywhere close to it, imho. i have been bearish on GE for four years plus.

but, that was then and this is now.


comments?

At this price almost like buying options. I bet it breaks $5.00 before it's all over.

JDJ

Please refer to Jon Stewart's video posted just above on CNBC CEO/CFO interviews and what it can do to your portfolio. Goldswinger.

I've listened to part of it too. He lost me when he said that they have 50 bil in commercial real estate that the market is currently not valuing properly, but since GE is going to hold those assets to maturity, they shouldn't be so heavily discounted and their present valuation is meaningless. At that point I figured the guy is lieing his {bleeeep} off and GE is done. 600 bil in debt will come home to roost. Its a bummer that a great manufacturing company is on the verge of being destroyed by their financial mosnter.

It's not like we didn't see it coming in 1998. I think I wrote about it in my letter. And maybe on FF back on AOL!

well, i think this is a big issue and a big part of the market and will play a large role in the coming rally. actually, i sort of like the perptual option idea and it is surreal that i am now argue FOR GE. * $50 billion in mainly first mortgage commercial real estate as a long term play is ONLY bad news if they are forced to throw it on the market. since a liquidity melt is NOT going to happen, that will not happen. even on a writedown - but how can you?: do now all RE owners have to mark2market their RE? - it wouldn't matter to liquidity. ** GE's other businesses will be hugely profitable during any kind of a rebound AND the AR portfolio will also look a lot better and quickly. CP's now stand at $90 biillion and the fed/treasury has already proved they will make sure they keep 'em rolling. i don't want to buy anything else and i would never recommend anything to anyone ... ever ... oh gawds .. i need to ge to the beach i feel a yeee...haaa... coming and i DO want some GE!

It's a gamble, H. It could pay off. What you're looking at is part of the reason it's not trading at $2. If you're right, it'll got to 20. If you're wrong, pennies. So, play it like an option. Mark

i am one of those, right here at TT, who has blasted GE for years, with emphasis on GE CAPITAL. this morning i listened to a 30 minute interview with the impressive CFO on CNBS. there was plenty of tough questioning and many frank responses. unless he was outright lying about easy-to-check-numbers there will be NO liquidity meltdown at GE.

i think i understand enough about cash flows and reserves and debt maturities and short and long term funding needs and availabilities to say this: GE is NOT going BK or anywhere close to it, imho. i have been bearish on GE for four years plus.

but, that was then and this is now.


comments?

If you were me, and you're not, I would wait until they can show they have regained control (ie. stopped the bleeding). I did that with Corning. It went from $110 to $1. By the time they had a convincing story it was up to $5. Then it went to $29.......