GE has more shoes to drop.
Over 50% of the commercial real estates in GE Capital portfolio was acquired in 2007. So far, GE has only set aside 11.5% reserve of such exposure.
This is a timebomb ticking.
Another thing I have not dug into yet, is GE Capital may also have the Credit Default Swap exposure, a la AIG fashion.
Until GE Capital comes out under the sun, I would not commit any investment capital in the name.
I dont see any benefit to trade / invest in Indian companies now, not just because of SAT fraud scandal, but because the advantage, or perceived advantage, to have programmers in India, call centers in India, has proven an illusion. With US unemployment running high, qualified, skilled workers are abundently available at much lower costs, companies are scaling back their operations in India. In fact, some companies have moved their call centers to Philippines and Canada, some even back to US.
Be careful for the 2x ETFs - many of them are Synthetics without any real underlying stock holdings. They are all made up of deriviatives. Any mishap in the operators' working capital, you will go SOL. Mad Money type of trades, OK. Investment, not for me.
I am a slow-lane kind of gal who prefers to sleep late. Too many names and business categories would confuse me. :)
Seriously, you can buy the dips in many familiar chip names and make 5 to 10% every couple weeks, no need to watch so many names in so many different businesses. |
