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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Perry Ganz who wrote (5874)	3/20/2002 11:20:06 PM
From: John Pitera	Read Replies (2) \| Respond to of 33421

Hi Perry, No I don't think that Bill Gross had a problem with the fact that GE had the 11 billion debt offering. He was not perturbed that the 11 billion would exert upward pressure on interest rate, as he had called for the FED to raise short term rates last month to get Institutional Managers to stop "Rolling down the Yield Curve". I'd bet that PIMCO did buy some of the first tranche of GE bonds and those bonds are now under water it sounds, partly due to the massive following shelf offering of 50 Billion dollars of debt and capital offerings. But I feel that Gross made a number of very valid points. If you look at GE, their power business is going to be weak due to the the capital expenditure scale backs of CPN, AES, MIR, DYN etc. and GE will have their cost of funding go up. on the positive side GE's PE is getting close to parity with the S&P 500's and so at least investors are not paying 2 to 3 times the multiple of the SPX. GE's stock along with KO, G etc is at the same price as 1998, ...long sideways action. John