Medici

General Electric: Genuine Risk of Collapse?

5. Stating that Buffet has made a huge mistake is quite a leap here. He is very long term minded and his record speaks for itself.

Even people with excellent long term records make mistakes....And this in investment, coupled with its timing is a mistake. In a phrase: Time Value of Money-



On Nov 17 10:01 PM donzoab wrote:

> Well written however totally slanted and missing some important facts.
>
> 1. GE has been winning very large contracts in Turbine and energy
> sectors recently.
> 2. GE has access to the TARP funds and the government is supporting
> their use of commercial paper. This market will eventually open back
> up. Just takes time
> 3. GE is still profitable and growing their cash. Selling assets
> and issuing some stock has helped them increase their liquidity in
> time to support operations.
> 4. While a great many companies are struggling to borrow money, GE
> is now well capitalized despite the numbers shown above. With access
> to the Fed window and TARP, they will have no problem meeting short
> term debt obligations.
> 5. Stating that Buffet has made a huge mistake is quite a leap here.
> He is very long term minded and his record speaks for itself. <br/>6.
> Panic in the markets always make for the best buying opportunities.
> This one is deep and serious but will eventually recover. GE is not
> going under here and $10 is a stretch. This is not AIG.
> 7. GE can trim operating costs in many ways and Jeff Imelt is doing
> the best he can in a very difficult environment. Jack Welsh for all
> his returns destroyed the environment with negligence and greed in
> many towns, cities and rivers during his tenor. Just ask the people
> living along the Hudson River. Can you say PCB's.
> Dow 6k could happen but that would just make this a better bargain.
> My recommendation here is to buy some stock and take a PUT position
> to limit any future downside, or write covered calls to increase
> your total return.