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

To: bruwin who wrote (24468)	7/27/2006 7:59:05 PM
From: CrazyPete	Read Replies (1) \| Respond to of 78751

> Yes, it may be making a positive return from issuing bonds, but > this is at great Expense on its Income Statement. ipso facto: bozo Try to take a step outside this discussion for a moment. Consider the following two scenarios: 1. NO ONE understands my simple argument. Yes, yes, I know that GE Capital is cash flow positive. But if GE could just cut out this business unit, GE could add BILLIONS to its bottom line due to lower interest expenses. Of course I understand that profit = revenue - expenses; but I'll ignore the revenue part of the equation for now. There is no glaring inconsistency in this argument, as far as I can see. GE's management must be a bunch of yahoos -- no, criminals -- to overlook this: they seem to describe GE Capital as a successful business unit, and they've actually been trying to grow it! Oy vey!! 2. I might not understand GE's financials. Which seems more plausible from your point of view?

To: bruwin who wrote (24468)	7/27/2006 10:15:05 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78751

"And whether you’re prepared to accept it or not, the fact of the matter is that the Market also doesn’t appear to have been that impressed with GE’s performance over the last 18 months, judging by the fall off in its stock price." The fact that GE has dropped in price doesn't itself support an argument for or against buying the assets and prospects of GE at its now current stock price. As W. Buffett has said, "You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right." I am betting the sharp guys like Mr. Buffett who are buying GE at current prices don't see such a perspective as what you have as having relevance for them when they outlook GE's prospects and strengths versus its current stock price. ----- I'm done. I'm guessing there will be more parries/comments,/rebuttals by you or others, but after a few more, I'll ask as moderator, that if the GE discussion is to be continued further that it be done on another thread devoted to that purpose. By this time readers here have either decided they are interested in GE (and so they can delve into it elsewhere), or they have no interest in purchasing GE stock now, and the thread can go back to supporting this latter group with other stock ideas.