Rakesh Saxena

GE's Dilemma: Sensible Business vs. Rating at Any Cost

Dear bocaj21: No, I am not recommending that investors jump over a cliff, not by any means. My forecast of a lower GE share price can be interpreted as a call for a leaner-and-meaner rationalization of GE's business model. Many thanks - Rakesh


On Jan 02 10:35 AM bocaj21 wrote:

> I think p4jain makes a good point about shorting a high dividend
> flow, even should GE cut its dividend below 7%. Moreover, Mr. Saxena's
> argument about shorting the stock, of course is based on assumptions
> of a worsening global economy and he probably is right. But short
> sellers at the current levels of GE stock, in my opinion, taking
> a high risk. True, if the short selling is a judgement call on the
> company causing it to transform itself into a learner and more efficient
> comapny, that is the economic (vis-a-vis individual investor) benefit
> for shorts. In GE's case, it might cause management to transform
> the company in ways to make it more competitive.
>
> However, speculators in shorts often get burned badly and shorting
> GE might be one of those situations. The good news is that Mr.Saxena
> is not advocating investors run to Treasuries and jump over a cliff.
>
>
> By the way I have no troouble with Mr. Saxena being a short seller
> in GE and writing this article. It is very helpful for investors
> to know that those who write articles often are explaining their
> own investment moves.