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Strategies & Market Trends : Paint The Table -- Ignore unavailable to you. Want to Upgrade?

To: Lost1 who wrote (21378)	3/21/2002 11:35:12 AM
From: Augustus Gloop	Read Replies (3) \| Respond to of 23786

Welcome to the new Bear........it started on March 11 <g>

To: Lost1 who wrote (21378)	3/21/2002 11:55:41 PM
From: John Pitera	Read Replies (1) \| Respond to of 23786

Hi L1, When you look at the Money rates table in the WSJ, Commercial Paper is priced in terms of what GE's issuing rates are. So it's an interesting situation when Bill Gross points out that there is a lack of market discipline in the marketplace, in that GE has 3 times more CP than bank credit lines, when the ratio is normally 1 to 1 and also that GE has 50 billion in unsecured commercial paper. But GE has a PE(26.56 trailing) that is less than the SPX's trailing PE (28.67) and their short cycle businesses will have improved earnings this year, so the picture is not totally bleak for them. What both GE and the S&P 500 are going to have for operating earnings, reported earnings, proforma earnings and who will report and focus on which is the $64 dollar question. John