ATCJeff's Account Talk

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Steadygain said:
Jeff, please excuse my stupidity...but would you elaborate.

GE is the most fundamental entity I have - I see them as the most major player we have - something that most represents the general economy.

If you're saying they are going down - like LEH, Bear Stearns,Fannie and the others - then I'm getting out.
Click to expand...

GE is no longer a bellwether stock. GE's credit division is feeling the same pain as any other financial institution. First, I do not think they will go under or be sold. Yes, their stock price will go lower. How much? I'm guessing the low teens. Watch for them to spin off their financial division into a separate company. I don't think anyone would be interested in acquiring that unit.

Yes GE has a 62 billion line of credit. Untap at this point. Yes they have a AAA credit rating. Watch for this to be downgraded. That will be a key sign. Right now they claim they have no problem finding buyers of their commercial paper. Who wouldn't with a AAA credit rating in these market conditions. The question, how big of a problem is Jeffrey Immelt hiding. How much bad paper do they own. Increasingly the cost of insurance on their paper is increasing to an area where other financial institutions have failed. IE, confidence in the company is decreasing.

When CEO's start telling the public that there is no problem, I feel they are lying. Who could not have problems in these market conditions. Shareholders will be left holding the bag, not the upper management.

Wallsteet is littered with failed companies even after their CEO's said they were fine. Don't believe what you hear from the CEO's. They are just trying to flight off a run on their company.

Make no mistake, GE is hurting. Will they fail? I give them 50/50 odds of recovering. At a minimum, GE financing is done!

My 2 cents. Hope this helps.
 
It helps a lot.

Thanks Jeff and 350z, that's the way to get out of the dark -even if it means having to rethink what I'd forever thought was in concrete.
 
Birchtree said:
GE will be around 50 years from now - I just added to my long term GE position.
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Agree. Plus in fifty years the stock price may get back above $40.:D Maybe they will increase the dividend for ya....Though I do love my CNBC.
 
I knew a nurse that worked in a GE light bulb factory when she was younger in 1963 and received 3 shares of stock. Four years ago her stock position had grown to over 300 shares and she was still reinvesting the dividend income. I remember this stock doing two 2 for 1 splits back in 1989. A lot of good money has been made with GE and I am adding to my position. Some people like to accumulate jewels and I like to accumulate individual stocks - I believe I own about 302 individual names and that provides me with 1208 dividend hits in a year - money buying more stock all the time. Do I worry about these low prices - nah, I'm a disciplined buyer. I could stay like this for another year with out any greed - it's all on auto pilot. Now if they suspend the capital gains tax for the next two years that would be nirvana.
 
Birchtree said:
GE will be around 50 years from now - I just added to my long term GE position.
Click to expand...

ATCJeff said:
Agree. Plus in fifty years the stock price may get back above $40.:D Maybe they will increase the dividend for ya....Though I do love my CNBC.
Click to expand...

Birchtree,

Yes, they might survive that long or they might not. But, what part of the 10% dividend to Warran Buffet don't you understand? That means less dividend for you. The might survive, but they also might be a $10 stock.:laugh:
 
I would actually welcome a $10 GE price - but doubt that will happen. Buffett is getting a prefered payout for his loan and I'm happy with my 5% payout. Can you smell that superlative bull manure wafting throughout the MB.
 
Birchtree said:
I would actually welcome a $10 GE price - but doubt that will happen. Buffett is getting a prefered payout for his loan and I'm happy with my 5% payout. Can you smell that superlative bull manure wafting throughout the MB.
Click to expand...
Hi Birch,

I agree with you on GE. I actually owned quite a bit of it, but had to sell in order to settle a financial transaction with my ex. Since then, I have always kept an eye on it. Since prices are so inepensive now, maybe I should start up again. As far as the jewels, they have yet to go down in price. If anything, they do rise in value, ableit it not as fast as some stocks. The word in the industry is that synthetic gems are going to be the only thing widely available soon. So, if you want to aquire a Burma ruby do it soon, since our commander in chief has banned all imports of the gem into our country.

:)
 
Birchtree said:
I would actually welcome a $10 GE price - but doubt that will happen. Buffett is getting a prefered payout for his loan and I'm happy with my 5% payout. Can you smell that superlative bull manure wafting throughout the MB.
Click to expand...

I added a little to my position and will quickly add more if it drops. I'm not worried about it. All stocks are taking a hit and to only have a fraction of the money Buffet has to invest, I'd be thrilled. Need more money. :laugh:

CB
 
wv-girl,

My pigeon blood came from the old Ceylon of the coast of India - they are now called SriLanka. I really don't think I could afford to replace it - my daughter will end up with it eventually. I bought my pearls from Na Hoku in Oahu, Hawaii.
 
Mr. Rescue

image002.jpg
 
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