jdubrox

GE: Not That Different From You and Me

To the gentleman who claims that Immelt has not taken any financial hit from GE's share price tumbling:

On 5/28/08 Immelt purchased 115,000 shares of GE at about $30.60/share. That means he spent $3.5 million of his own AFTER-TAX money to purchase these shares. To my knowledge, he hasn't sold any shares since, and his stake stands at roughly 1,562,000 shares.

Do you have ANY idea how much money he's lost in the last year on his own company's stock? No- the answer is that you clearly have NO idea how much of a fiscal impact this is having on Immelt's own retirement portfolio.

1) He's not going anywhere. They're not going to give him the boot because he's handling GE's credit issues as well as anyone could. The market has a much larger hand right now in GE's financial success than Immelt does.

2) Since GE's peak last fall at around $42 per share, to where it stands right now at about $25.50, Immelt finds himself presently sitting on an unrealized loss of more than $20,000,000.

So let me say once more: you have no idea what you're talking about. It's ignorant investors that keep wise ones from making the right investing decisions.

I will proudly collect my 4.85% dividend yield of $1.24/share per year on my long position in GE. The company has announced its intention to maintain its present dividend, and you can rest assured they'd never cut it. Tell me what you're earning in your savnigs account. If its anything close to the national average, then my GE shares are yielding ten times as much income each year than your savings account is.

Oh yeah, and I'm beating inflation.