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GE Capital: Raising Concerns, Sinking Share Price
Excerpt from the InvestorGuide.com Stock of the Day on 3/5/2009

On Wednesday, investors liquidated their shares of General Electric due to concerns stemming from their financing arm, GE Capital. Its stock fell to a level unseen in 18 years, trading at one point for less than $6 per share. The selling spree began on fears that their AAA rating would be cut sometime in the near future. However, these concerns over their financing unit are nothing new. Since the markets roared into reverse in the last quarter of 2008, investors have been keeping a close watch on GE. At one point, the cost to insure their debt was so high that investors were comparing the costs with AIG's (AIG: Charts, News, Offers) bonds. So, after only a few weeks into the 2009 fiscal year, are investors being too hasty?

Given current data, it can be argued from both sides. Looking at recent events, GE posted a 44.8 percent drop in Q4 2008 profits and recently, they have decided to cut dividends by 68 percent. Some investors also believe GE Capital is not doing enough to protect itself against bad loans. In comparison to larger banking institutions, they only had $5.3 billion (or 1.4 percent of their receivables) set aside to protect themselves against defaults by the end of 2008. Other banking institutions had up to 2.5 percent set aside. Furthermore, targeting $5 billion in earnings may be nothing more than a lofty goal. In a way, they could be setting themselves up for a rude awakening in the near future. Now look at real estate holdings; the company has written down the value of many of these investments, but there is concern that the values could continue to fall. Because they classify these holdings as "long-term investments," the reluctance to apply mark-to-market accounting could mean they are overvalued. More >


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Dark Earning for Lightbulb Maker GE
Excerpt from the InvestorGuide.com Stock of the Day on 1/23/2009

Ending a week of grim earnings reports, GE announced that profit from continuing operations declined 43% to $3.87 billion, or 36 cents a share, marking one of the toughest years in GE's 117-year history. But the earnings met Wall Street expectations, which have been significantly lower since the harsh economic downturn. Shares of the blue-chip have tumbled by 60.7% over the past 12 months, while the S&P 500 has dropped by only 37.6%. For weeks investors have been wondering, will GE be able to retain its AAA credit rating and generous dividend? More >

GE Profit Falls
Excerpt from the InvestorGuide.com Stock of the Day on 10/10/2008

A little more than three days ago, GE shares reached their eleven year lows but recovered. This morning when the markets opened, the stock was trading below both of those prices in the upper $19 dollar range. Perhaps this was to be expected. After all, the economy is struggling in nearly every sector, and influential leaders are working hard to combat a global recession. As the second largest company by market cap in the US, is this a sign of things to come or is this just a sign of where we are? Furthermore, what does GE think is going to happen in the near future? More >

General Electric Makes Second Quarter Recovery
Excerpt from the InvestorGuide.com Stock of the Day on 7/11/2008

Company leaders and General Electric shareholders can breathe a collective sigh of relief this Friday with the release of GE's second quarter earnings statement. A dismal first quarter earnings release rattled investors and incited some changes for the conglomerate to help the company grapple with the current state of the global economy. GE is the second-largest company by market capitalization in the U.S., with operations in every industry from aircrafts to entertainment, making it a bellwether for the U.S. economy. Are this quarter's results a sign that market conditions are improving, or has GE's latest round of strategic decisions just begun to pay off? More >

GE's New Strategy for Domestic Bliss   5/16/2008

General Electric Strikes Deal with Saudi Basic   5/21/2007

GE Sells Advanced Materials Unit; Downgraded by UBS   9/14/2006

GE's 2005 Earnings Fall Short, Company Boosts 2006 Outlook   1/20/2006

General Electric, Co. Restructures Business Units   6/23/2005

GE's Net Income Jumps 25%   4/15/2005

General Electric Company (GE) Upgrades

Date
Analyst
Old Rating
New Rating
11/06/2009
Sandford C. Bernstein
Market Perform
Outperform
07/30/2009
Goldman Sachs
Neutral
Buy
03/20/2008
Merrill Lynch
Neutral
Buy
02/27/2007
UBS
Buy
Neutral
03/10/2006
Hilliard Lyons
Buy
Long-Term Buy

General Electric Company (GE) Downgrades

Date
Analyst
Old Rating
New Rating
09/26/2008
Argus
Buy
Hold
06/16/2008
JP Morgan
Overweight
Neutral
04/14/2008
Bear Stearns
Outperform
Peer Perform
04/14/2008
Oppenheimer
Outperform
Perform
04/11/2008
Citi
Buy
Hold
04/11/2008
Deutsche Bank
Buy
Hold

General Electric Company (GE) New Coverage

Date
Analyst
Rating
No new coverage listed for GE at this time.
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