$GE

GE trades $20, now what?

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.

 

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Will GE do it or not?

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.

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