| | | I have the same concerns with respect to the finance arm of the company. I have been of the opinion that if it's anywhere near as bad as the strongest critics claim, then they will find a way to spin it off or sell it off. There are ways to do this, I believe, even if it's fairly worthless. Naturally, if the hole is as deep as some claim, then it still maybe best to hang onto it. Look at companies like RDN and MTG for background. If I remember correctly, MTG was selling for 50 or 60 cents at the peak of pessimism and they are over $6 the last time I looked. RDN is up probably as much, if not more on a percentage basis.
I like to think that if those companies can turn things around, then there shouldn't be a problem for GE capital to do the same. It could be a foolish assumption, I do recognize this possibility!!
As to book value, unless there is more transparency with the financing arm. there's just no way to know how much it's worth. If the finance hole is truly "that deep",then who knows what the potential write down would be?? |
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