With all noise on taxes the slide in GE is quietly going under the rug. Just last week I wrote here it would be more sensible to price GE at $20 on a reduced dividend. GE is cratering on a downgrade now of all things before the big dividend cut. Downgrade it at $35, but at $20? Many don’t think the yield can hold at the near 5% level. If it does get cut, we should see lower prices.
Not so quietly GE has fallen from the low 30’s into the low 20’s with SPX and INDU making all-time highs. Massive asset sales could be on the block and the equally massive 4.4% TTM dividend could be on the block too. I think most of the weakness in GE is centered on those issues. Option Pit is giving a free credit spread webinar tonight so this is an inkling of that. And no GE will not be the topic.