Posted by lessarda on 21st of Jan 2011 at 12:55 pm
GE reported a 1% increase in revenue and about a 50% increase in
net income and the stock is up 6%. Look inside the earnings and you
see almost 2/3 of the increase came from GE Capital,
the financing unit. So, on mediocre industrial topline growth
and lower losses in the riskiest elements of the company, investors
seem to be buying positive guidance and trusting that the
industrial components will improve going forward.
The Dow 30 might be like the Nifty Fifty of the 70's --
just the last to break down.
GE's Capital division has always been the big winner for the
company for years. In fact at 2/3s may be a bit lower than I recall
from a historical view.
Posted by lessarda on 21st of Jan 2011 at 01:09 pm
The 'riskiest elements' are still real and the company is like a
shadow bank. We'll see how long the implicit and explicit
government aid can hold things up. They hope it's long enough to
earn their way past the write-downs; not sure the market will wait
that long.
Good point -- look at GE today
spx5,bull flag
Posted by lessarda on 21st of Jan 2011 at 12:55 pm
GE reported a 1% increase in revenue and about a 50% increase in net income and the stock is up 6%. Look inside the earnings and you see almost 2/3 of the increase came from GE Capital, the financing unit. So, on mediocre industrial topline growth and lower losses in the riskiest elements of the company, investors seem to be buying positive guidance and trusting that the industrial components will improve going forward.
The Dow 30 might be like the Nifty Fifty of the 70's -- just the last to break down.
ge 's2/3 from Capital side
Posted by perthx on 21st of Jan 2011 at 01:14 pm
GE's Capital division has always been the big winner for the company for years. In fact at 2/3s may be a bit lower than I recall from a historical view.
GE also, just got a
Posted by ditch on 21st of Jan 2011 at 01:02 pm
GE also, just got a sweetheart deal with the white house.
GE
Posted by hazbin1 on 21st of Jan 2011 at 01:01 pm
like all of the 2 big to fail banks, ge capital is allowed to 'manage' the valuation of 'bad' assets. best u read between the lines here.
Exactly
Posted by lessarda on 21st of Jan 2011 at 01:09 pm
The 'riskiest elements' are still real and the company is like a shadow bank. We'll see how long the implicit and explicit government aid can hold things up. They hope it's long enough to earn their way past the write-downs; not sure the market will wait that long.
lessarda, thnx......wow that was a mouth full! I dont know much about fundamentals.
Posted by kobie on 21st of Jan 2011 at 01:00 pm