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Non-Tech : General Electric (GE) -- Ignore unavailable to you. Want to Upgrade?

To: TechMkt who wrote (922)	8/9/1999 1:24:00 PM
From: TechMkt	Respond to of 3256

GE is quietly leading an e-commerce campaign. Note the bolded portion in the article. Fez ________________________ GE, others invest in Homepoint.com By Bloomberg News Special to CNET News.com August 9, 1999, 9:45 a.m. PT GREENVILLE, South Carolina--General Electric led a $16.5 million investment in closely held HomePoint, which runs the home furnishings Web site HomePoint.com. GE's GE Equity unit put in about a third of the money, while Catterton Partners added another third, said HomePoint president Mike West. The remainder was financed by New Millenium Partners, Piedmont Venture Partners, Centennial Funds, and a private investor, he said. HomePoint, based in Greenville, South Carolina, will spend about half of the money on a radio and print marketing campaign, including advertisements in Newsweek, People, and USA Today, West said. The other half will be used for operations and Web site development. HomePoint, which was founded in December and sells furniture, lighting, art, and kitchen accessories, has seen its traffic increase fivefold. The company declined to disclose its revenue. GE Equity has invested in more than 40 Internet and electronic-commerce companies, including iXL Enterprises, HomeStore.com, ValueVision International, StarMedia Network, and Preview Travel. Shares of GE, the No. 1 maker of large appliances for new homes, fell 0.88 to 106.13 in afternoon trading.

To: TechMkt who wrote (922)	8/9/1999 5:29:00 PM
From: Bill Martin	Read Replies (1) \| Respond to of 3256

Re: Can't understand it. GE is making money hand over fist. They have steady 14% growth. Well, you're probably aware that for a large stable company with 14% growth there is a line of argument that they should sell at a P/E of 14 (give or take). They've blown waaaay past that by 2x+. Obviously it isn't just GE -- the whole market is overpriced on this basis. Before anyone jumps all over me, let me state that I am long GE as well as a bunch of other stocks which are even more over priced. I don't personally believe the P/E argument is a determining one, but I do believe that it's one you can't entirely ignore because there are other buyers/sellers out there who do follow it. The "ideal" P/E however (whatever that may be) is mathematically related to interest rates. When rates go up the market will drop in response. People currently expect the rates to go up again. Anyhow, the whole market is down over the past few weeks. One can't expect GE to continue to rise to the sky forever in the face of a falling market. Bill