GE Gets Pummeled
June 26th, 2008
Looking at GE (NYSE:GE) today… down over 5% from an already savaged low.
What’s going on with the US’s oldest stock?
Well… for one, the sale of its $30 bn private label credit cards is currently under scrutiny, with JP Morgan Chase apparently dropping out.
That and the … strategic decision… to part ways with its appliance division are hammering this traditional bellweather stock.
Does CEO Jeff Immelt really know what he’s doing. Given that he recently bought $3 million worth of shares, you’d think he has an insider edge, but Wall Street don’t echo that confidence.
2.5 million shares were dumped as the stock hit $26.24.
Despite the rally yesterday, it appears that shareholders don’t feel that GE is a bargain at this price, so where’s the next resistance point? $25? $20???
I imagine the board at this point are putting tons of pressure on the erstwhile CEO. After all 14.5 BILLION dollars were written off the company’s market cap today from yesterdays close. (That’s what you get for having almost 10 billion shares outstanding)
GE’s units still continue to make profits, and their sales teams continue to secure long term deals.
Does the CEO know what he’s doing? Wall Street says no. But don’t worry about our Jeff, I’m sure his Golden Parachute will save him.
June 26th, 2008 at 4:15 pm
I don’t know but if it hits 20 bucks, I know where my stimulus check is going. Actually I might just sink it in the stock market, buy low…sell high.