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GE (GE) "strongly disagrees with the premise" it is selling off assets in a desparate attempt to...

GE (GE) "strongly disagrees with the premise" it is selling off assets in a desparate attempt to raise cash. But looking at recent deals, and GE's effort to dump NBC Universal's $2B in debt by selling it into a JV at way below market value, Daniel Fisher can't help but wonder: What then?
Comments (5)
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    But GE is green, so surely they can not be having problems. :-)

     

    Green solves all ills.
    26 Nov 2009, 01:59 PM Reply Like
  • maelstrom
    , contributor
    Comments (138) | Send Message
     
    Yes being green has done miracles for the Martians..Whole Green Movement another massive FUBAR
    26 Nov 2009, 02:04 PM Reply Like
  • Duude
    , contributor
    Comments (3393) | Send Message
     
    Of course, they're lying, but then what would you expect? They can't afford to see their equity/debt ratio fall. They've already received in excess of $160 billion in loan guarantees which afforded them extremely low interest rates, and they're still selling off assets below market value? The sale of NBC universal is a surprising move for another reason. They've leveraged their ownership of NBC to lavish praise upon the Obama administration. While it appears very political, it may be more about earning political favors from those with the power. So far, GE has not only received more bailout than just about any other company, but the terms are more favorable than anyone else received, and they managed to pull strings to block the early calls that they separate themselves from their banking unit but still not be under the thumb of the pay czar. Next we can expect huge government contracts in the field of alternative energy. Talk about cashing in political favors. And now GE has to sell off 1/2 of NBC universal for a below market price? No, they've got serious problems.
    26 Nov 2009, 02:43 PM Reply Like
  • Humble Value Miner
    , contributor
    Comments (433) | Send Message
     
    Well they have Buffett in so they should at least have some good justification. Maybe they're just seeing not so much long time NBC profitability and they want to invest money in a more productive field. Do you know some teenagers? Ask them how much time they spend watching commercial television.... Habits are changing.
    Green field will be profitable as Obama is going to promise a huge carbon footprint reduction and this has to be done someway. Some Chinese companies are going to open plants in the USA and you want GE to sit quiet? You may disapprove their somewhat link with Obama but probably now they know details we don't know yet. So I would like to see what they will do some years from now.
    Meantime I admit I prefer to go for some small caps that have a more precise area of activity.
    26 Nov 2009, 04:43 PM Reply Like
  • Investing1
    , contributor
    Comments (18) | Send Message
     
    Folks, I have been saying all along that as buffett gets senile he is making a ton of mistakes. Buying a unionized railroad for a 30% premium is a huge mistake. Tomorrow he is going to be crushed and he will have to raise equity rapidly to shore up his ratios that he needs to maintain with the insurance business.

     

    Remember, he doubled down, and tomorrow he gets called for it.

     

    And GE, I have been telling all the readers to my blog for the past year that GE is bankrupt. The government will end up taking them over too.

     

    Folks, you have to pay attention. India did not buy all the gold on the planet 2 weeks ago for NO reason.

     

    Credit markets have seized up again and it started with Vietnams devaluation. When a major economy like that... ( it is growing rapidly) devalues its currency you have to stand up and run as fast as you can for the exits.

     

    India buying, vietnam devaluing, Abu Dabi in default. More shoes will fall and Buffett will get the squeeze.

     

    All you have to do is read along for free at my blog myspace.com/investing1
    26 Nov 2009, 09:14 PM Reply Like
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