g7enn

Time To Start Buying Some Dogs?

or the past 20 years, GE Mortgage and GE Capital, now Genworth Financial have been misstating earnings and illegally swapping assets between their many companies to cover up their losses. If the rating companies knew of their fraud, they would be finished as a company. Shareholders, uniformed, don’t know of their deceipt and intentional manipulation of the numbers to meet quartely earnings projections. Their value is synthetic just like the trades they make throughout the world. Their marketing genius cannot cover up their desperation and failing companies. Indeed, the chickens have come home to roost!

By sandra stevens-miller on Jun 22, 2008

reggiemiddleton.bankim.../

Adding to My GE Position

Suitors Drop Out Of Auction For GE Card Unit

Suitors are dropping out of auction for GE's $30 billion credit card unit. Had GE tried to sell that card unit 2 years ago there would have been 10 banks chomping at the bit to pick up that portfolio. Now, no one wants it.

globaleconomicanalysis.../

Valuing GE (It's Cheap)

GE is virtually bankrupt. Check out it's Cash Flow. It borrowed over $50M in 2007, over $43M in 2006 and less than $9M in 2005. Borrowings are increasing exponentially while the cash to pay for those borrowings is approaching zero. It's cash flow is coming from its borrowings. It's cash flow for 2007 was under $2M. What happens to GE as the financing and credit situation worsens?

Debt/Equity ratio is 4, way too much debt. Where is it going to get the money to finance operations? From Bernanke?

If you fail to understand the above then take a look at its stock price, going the way of Bear Stearns and why are investors buying so many puts on this company if it wasn't about to go bankrupt?