llc_kaiba

General Electric: Not Quite a Value Trap, More Like a Value Pit

I agree to what you're sayin' bocaj21...


On Dec 29 09:51 AM bocaj21 wrote:

> Alan's comment is well researched and a good analysis. But he then
> extrapolates illogical conclusions from his data. For one thing,
> he implicitly makes non-analogous comparisons between the balance
> sheets of GE and GM. True, GE shareholders will likely have a tough
> go this coming year, but to intimate that GE could fall into "the
> pit" in 2009 like GM did in 2008, is analyticallly nonsense, given
> that it intimates not only a short-term rocky road, but possible
> demise of a respected global company (in no way like AIG). GE certainly
> will survive the current world economic crisis, though a leaner company
> with less emphasis on GE Capital will result. In the long run that
> is good news for equity holders.
>
> What the current economic crisis has produced is a lack of patience
> and a bias that everything will fail. That actually is the important
> good news -- it means that though bad times continue for the foreseealbe
> future, such negativity is the sure sign of better times are ahead
> for those with patience and knowledge that things are never as bad
> )or as good) as they seem.