Shorting GE

Discussion in 'Stocks' started by myoffices, Oct 16, 2009.

  1. Ge is on shaky ground. I have been looking at the GE story and they are in trouble in my oppinion. The financial bite has taken them on and the overall sentiment in the work environment is hostile. If the workers are unhappy how can the company thrive.

    I look at earnings and wonder what would make them grow. I look at the products and wonder if they will be around in ten years as a servicer of the product line. Since Jeff has gone into retirement the company has gone to the dogs. Don't believe the CNBC Hype they try to divert attention to the real problems. In the international markets they are weak and their exposure is to broad.

    GE is a short worth looking at . I am looking for support on this. They can't take on any short pressure since their capital base is ficticious I would like the SEC to investigate them.
  2. Why not go long puts?
  3. Going to the puts makes sense.
  4. ess1096


    A lot of people will join you if you see a weekly close below $13.03. Until then it's just speculation.
  5. I see that GE is using CNBC to push their image. Its a smart thing but the SEC needs to do their job. This is a conflict of interest if I ever seen one. I hope the payout of that CEO goes to Minimum wage.

    I think they have a lot of cash but what will they look like after they spend it?
  6. piezoe


    I don't like shorting into a rising market, but GE is on my list if and when the market turns south in a serious way. I'll re-evaluate it at that point.
  7. With GE its only a matter of time. Be aware of the next rise then major decline in the marketplace. After combing through the balance sheets it looks like its holding strategy may be its downfall. Its like an AIG for all kind of stuff. Their financial machine is working on 3 wheels. Their product lines are diverse but the finance was the work horse and breadwinners.

    They finance cosmetic surgery and alternative goods like highend beds and these luxury items may be going away. on the big ticket items I see more competition coming down the pipeline.

    Im sitting on the side waiting to pounce I think upside 10% and downside at least 40% from here...
  8. GE is hoarding cash and I see them surviving this event. They seem to be working through the issues. There will definately be periods of downside for the equity but I think long term 25 years it will be fine.

    GE is not AIG, totally different assets. AIG sold a lot of derivatives without any real collateral. GE holds lots of property etc.. physical assets and capital goods which could be good for GE if the dollar collapses.

    At least they did not take TARP money.

    I would be more concerned with the banks. ie: WFC,C,BAC,JPM. Look at the eroding depository base and the ugly holdings. I would not want to be long banks.

    My price target for JPM is 21 dollars a share. I think the next hit will come and it will be a rapid downturn.