Thursday, March 05, 2009

A PYY Financial Brief

From Reuters comes this report:

General Electric Co (GE.N) shares fell as much as 16 percent on Wednesday, touching their lowest point since 1991, as investors worried about a possible downgrade of GE's credit rating and how its finance arm would get through the recession.

It's not surprising when you consider this company owns NBC and its cable spinoffs. The NBC News Department is the most biased among a biased industry, even more so than CBS. Mouths like Rachel Maddow, Keith Olberrmann, and Chris Matthews cannot even command a third of what their Fox News counterparts can on most nights, combined.

But this is hardly the entire reason for their stock value demise.

GE has bet heavily on Global Warming and probably has put a lot of eggs in that basket. It's hard to sell something like this, especially when there is a foot of snow on the ground, when meetings and conferences are scheduled. Products cannot be marketed and sold, unless of course, laws are changed to mandate usage of said products.

Another issue is GE's business with Iran. Image is everything, and investors are not usually those that believe in doing business with terrorist states. Although this is not new information, it all figures into the equation.

But the one thing I think has hurt GE as much as anything is the CEO, Jeffery Immelt. He is corrupt, incompetent, and is quite desperate right now, Why else would he buy 50,000 shares of GE stock. himself? He did this with the full knowledge of what my be coming down the pike, as far as legislation is concerned.

You see, he is on Obama's Economic Recovery Advisory Board. This is a bit troubling because now he may have to face questions about insider trading, should the government implement something that would benefit GE and it's stock would rise. The entire situation has given the appearance of a conflict of interest from the beginning. Big time CEO appointed to board, buys stock, etc.


At some point, the board will need to make a move. Whether there is any value left in anything, remains to be seen. But it would be a good idea to make that move sooner, rather than later.

6 comments:

Anonymous said...

This is a bit troubling ...

Why is that, LA? More importantly, we ought to ask, “Troubling to whom?” It isn’t troubling to any of the financial journals, or the mainstream press, nor to any of the millions of people in this country who are unable to balance a checkbook.

It isn’t troubling to anyone in the Obama administration because, as you should know by now, everyone is wearing a thick coat of Teflon—and this allows them to operate with absolute impunity. In our entire history, we have never witnessed a time when so many croo . . . er, officials have legitimate expectations for ill-gotten personal gains. And why shouldn’t they? Haven’t they earned the mandate of the people? And frankly, LA . . . I do believe you have completely overlooked the mantra for hope and change; even you have to agree that Obama has delivered this in spades.

Overall, I think that if you will just allow yourself to be drawn into the flame of Obama-mania, you’ll find a much less troubled world. And please do let us know how it turns out for you.

Greg said...

Oh, LAS, you racist! (/sarc, obviously).

Just imagine if Bush were promising hundreds of millions of dollars for the owner of a news outlet that can't seem to find anything negative to say about the President.

No doubt Fox was biased in W's favor, but at least W never paid them for it!

Greg said...

Also, a whole bunch of my friends and family are losing their jobs and homes. I am so freakin' angry right now. Obama has spent well over a trillion dollars, and it's going to his political supporters and far-left whacko causes. I haven't seen shit in terms of results on the ground. So, thanks for nothing, 0bama, you freaking liar. Zero. Loser. Objet d'merde. Obama is already a complete failure. He should quit and offer the job to someone slightly qualified....

BB-Idaho said...

So, General Dynamics (defense) has dropped from 96 to 40. The suction of market drift..doesn't matter what you make.

LA Sunset said...

//Overall, I think that if you will just allow yourself to be drawn into the flame of Obama-mania, you’ll find a much less troubled world.//

And you call me sarcastic?

Let the record show that one, Chester W. Mustang, has left a comment riddled with sarcasms.

LA Sunset said...

Greg:

//Also, a whole bunch of my friends and family are losing their jobs and homes.//

BB:

//So, General Dynamics (defense) has dropped from 96 to 40. The suction of market drift..doesn't matter what you make.//

One of my best friends in the world, from HS just lost a job with General Dynamics. He's been with them for years.