Kerry,
Re: GE has a ton of stock out there.
And your point is? ENE, LU, NT, GX, TYC and others have had lots of stock "out there". That didn't stop Mr. Market from slapping them. America still believes the myth that GE is earning as much as it says it is, consistently. It's all managed. When the covers come off some of the hanky-panky, there could well be an over-reaction. What if, as seems likely, the growth projections are too high? What if, as seems equally likely, some of GE's loans and commercial paper have to written off as unreserved losses? This is a highly likely event.
As far as buyers coming into GE to put a bottom under it should it start to sell off, I doubt that you have the psychology today for a "buy the dips" support structure. Once the selling starts, who do you see coming in to buy, especially inasmuch as GE's accounting chicanery is going under the microscope?
OK, you can have your Dow 7137. That number doesn't hold any significance to me. My prediction is NAZ 999.
Ciao! |
