GE below $9.00 a share..!
- Thread starter Jarod
- Start date
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The Almighty
Not yet... the technicals look like shit... a straight down trend since the end of 2007 with no indication that it is going to break the downward slide.
The financial segment of GE is a mess and could threaten their dividend.
Bottom line.... is it terrible here? over the long term you would likely be fine buying and holding GE. But until this market as a whole turns, it will likely continue to slide.
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The Almighty
Food for thought....
The Dow broke its 50% retracement level of the 1982-2007 bull market. That is a major negative technical break.
The S&P is hanging just above its 50% breakpoint. (If it closes at or below 740... that will be a break)
The Dow broke its 50% retracement level of the 1982-2007 bull market. That is a major negative technical break.
The S&P is hanging just above its 50% breakpoint. (If it closes at or below 740... that will be a break)
If anyone knew the answer to that question (as applied to all financials) we wouldn't be in half the mess we're in right now.
uscitizen
Villified User
Yeah lots of experts thought they knew.
And we are still listening to the same experts to get us out of the mess they created.
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The Almighty
I dont know the answer to that top. Typically you can look at the financials of a company and determine what the potential for loss is. But in this market it is hard to determine given that as a stand alone they should survive, but if other companies continue to fall it could snowball and still hit them.
Look at what JP Morgan just did. They were pretty strong relative to other financials. Yet they slashed their dividend to provide a better cushion should things continue to get worse. GE's financial segment is not as strong as JPM. But they also have other segments that can help offset this segment.
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The Almighty
Buy Toyota
It is the best run auto company in the world. I would not touch any of the US automakers.
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The Almighty
Toyota is at $65 per share.
Share price does not indicate VALUE. A stock being cheap doesn't make it a good buy.
If you gain ten percent, does it matter what the original stock price is? Of course not. If you lose 20% does it matter? Of course not.
I understand that but it would be more likley, from my perspective, that ford would go to $4.00 a share than it would be for Toyota to double.
Share with me if you find anything interesting...
Very cool, thanks.
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The Almighty
What are you basing that on?
Toyota has the greater cash flow, the greater stability, the greater profitability and better management.
Just trying to understand why you think as you do on Ford. What about it makes you think they have the potential to double? Current book value on Ford is negative.
While I do think Ford is the better positioned of the domestic automakers, it has substantial risk.
Topspin
Verified User
It didn't take me long. GE stinks to high heaven, what looked like a buy because of the soon to be cut dividend and it's green potential is a bomb waiting to blow up. I'm going to call ameritrade and get options access to buy puts on GE.
why?
1. they had to put in $15,000,000,000 to protect cds positions a while back and are again at risk of having to pour more good money after bad (read betting on interest rates, the worst corp behavior).
2. They have 36 billion in commercial real estate and have only written down 1% against it. Goldman has written theirs down 25% as a comparison.
3. They have 60 billion in mortgages that they have only reserved 11.9% against those currently 90 days delinquent. Are you kidding me?
Freak give me a tip on buying puts, this will be my first go round say I expect GE to blow up in less than a year. Should I buy a but out at the end of the strike dates to be safe?
why?
1. they had to put in $15,000,000,000 to protect cds positions a while back and are again at risk of having to pour more good money after bad (read betting on interest rates, the worst corp behavior).
2. They have 36 billion in commercial real estate and have only written down 1% against it. Goldman has written theirs down 25% as a comparison.
3. They have 60 billion in mortgages that they have only reserved 11.9% against those currently 90 days delinquent. Are you kidding me?
Freak give me a tip on buying puts, this will be my first go round say I expect GE to blow up in less than a year. Should I buy a but out at the end of the strike dates to be safe?