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

To: CIMA who wrote (1787)	3/16/2001 8:39:05 AM
From: Arthur Tang	Respond to of 3256

Beware of talking the stock down by P/E ratios. P/E ratios are determined by resistance and support data in technical analysis. The stock price depends on cash pool size and stock pool size. At the moment it is 85 million shorts but no data on cash pool available to support the price(technical analysis with volume data will show what the cash pool spent so far, but not what is in reserve and what new money will come in next). Only the specialist knows, because that is his business to know(perhaps cash pool is $60 or so, times 85 million shares shorted). When cash pool is drawn down or stock pool is too much more than needed, the specialist will go to the company(in this case it is GE). IBM Gerstner got the calling when stock pool was too much and did well with the borrowed money($4 billion then $10 billion a few years back). Mr. Welch will know first hand if it happens(if he gets the calling). If GE sells more new issues up to 85 million shares by negotiation, then this shorts crisis is over. GE sells to stockholders for reinvestment of dividends anyway.