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

To: gcrispin who wrote (32289)	10/5/2008 3:25:00 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78748

GCRSpin - re GE well you got a better price than I did. I think the move to boost capital was probably correct, given the circumstance we are in. The question is how is going GE to perform going forward? I do not think they are going to outperform the many good industrial names that are on sale now too (UTX, RYCEY, FWLT, TYC, TEL and many others...) and that do not have to deal with the financial baggage. If split ever happens than I expect the GE financial Spinco to be dumped by investors. the financial part will earn something like 1.2-1.3$/share and is probably worth 15$. I do not think that GE Financial Spinco will trade for 10x earnings so it seems like the spinoff will not create much value, at least not initially. I hope I am wrong, i still hold 1/2 of my initial position but I am more tempted to sell than to keep it right now.