Thursday, March 5, 2009

Following the G(rav)E(y) train

Will this be gravy...as in good, or grave as in bad? This morning has a library full of analysis looking at GE. There is a tremendous amount of negative sentiment towards the survivability of the Industrial giant or is that zombie bank? Full arguments abound in the blogs and on the talk shows. Much of these analyses are way over my head but the debate in the comments sections of bloggers is most helpful for me to better understand. GE CFO was on Squawk Box this morning. I like the way he has put it, in terms of their ability to finance themselves through a variety of avenues. Maybe he just says what I want to hear. But he says the negative sentiment and credit variability is overdone. GE Capital will be profitable in Q1. He says there is absolutely no need for additional capital at GE through 2010. And yet the newswires whisper bankruptcy? insolvency? liquidity challenge? GE has a massive balance sheet, an enormous asset base, and fundamentally good business. But what's hiding in the debt? How will CRE valuations affect the big picture? I'm going to keep reading and keep watching. this is fascinating.

GE's Response to Investors
Discussing concerns over lending losses and possible credit downgrades that have pushed shares of General Electric to levels not seen since the early '90s, with Keith Sherin, General Electric CFO/vice chairman and CNBC's David Faber.

GE's CFO on the Big Issues
Feedback on General Electric's chief financial officer Keith Sherin says about the company's capital risk, with Scott Sperling, THL Partners CNBC's David Faber.

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