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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (24433)	7/25/2006 11:30:41 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78744

If the company was doing such a great job with its Revenue, from whatever source, I'd expect to see its price trend rising, instead of falling over the medium to longer term. GE is currently suffering from "large cap malaise" like many other stocks - that has not much to do with it's balance sheet. GE was overvalued at 50$ in 2000, has been growing since and but it's undervalued now in 2006 at 32$, IMO. Roughly 1/3 are it's asset are associated with the financial arm and 2/3 are in it's industrial business, which is stated pretty clearly in its earnings report. Since there are no related letters of credit any more both business' can easily regarded as separate. The debt of the industrial arm itself is pretty small relative to it's cash flow. besides that S&P gives GE a AAA credit rating, which pretty much speaks for itself. To compare the numbers of a (partly) financial company with a manufacturer of goods is nonsense and will not yield any investment insight, IMO. Enough said. Next topic please.