GE Update(02-03-09) (27-02-09)

The world of GE continues to fascinate. The stock is trading below $9 (trading range $8.50 - $8.85) with some substantial trading early but volume has since fallen off again. Setting the record straight on GE Capital is a valuable piece that also incorporates a correction to the DB analyst remarks that sparked some of the activity in GE trading (General Electric Sparks Put Activity After Price-Target Cut). Essentially, the analyst's correction states that additional capital injections will not be required to meet various debt convenants. Today's price action is again choppy with a downward trend. Maybe it is good that I missed filling my order last Friday at $8.99 afterall. We'll keep watching as I remain convinced the company is solid. The Sage of Omaha will release his annual letter this weekend which might also shed some light of their view forward. Below is a 5 min candlestick chart of the day's progress.

UPDATE1: Dividend gets cut by 66%. That's pretty much how the day is going, and with that, an updated chart below. So will they keeep their AAA rating? And which is more important, the dividend or the rating? So say the dividend cut is good, and the maintenance of the rating is critical since the debt remains (General Electric Slashes Dividend 68%, to 10 Cents - Economy * US ...) and (US Stocks Edge Lower After GE's Div Cut; Citi Slumps - MarketWatch). Wow!

UPDATE 1(02-03-09): GE opens and falls another 5%+ in morning trading. Is it going to break $8?
UPDATE 2(02-03-09): @10:10am falls below $8
UPDATE3(02-03-09): @11:58 falls to $7.51