Bringing Bad Things to Light

When the mirror crashed I called you
And turned to hear you say
If only for today
I am unafraid
--Berlin

Some nice thoughts toward the end of this piece on GE, such as:

"The best way to think of GE is as a finance company masquerading as a manufacturing company. This was essentially the business model of General Motors as well, except GE is better at it.

"In reference to the sale of NBC entertainment, Immelt said GE has no need for cash. Of course GE has a need for cash. GE has a total debt of more than $500 billion.

"Instead of buying back shares at totally ridiculous prices over the years, GE could have and should have been retiring debt. The panic low earlier this year below $6 was on concerns that GE wouldn't be able to finance that debt."

It's been my experience that so many folks are in this stock without any idea of the debt carried by the company. A peek at the balance sheet offers cause for pause.

no positions