I just wanted to post a quick follow-up note to my Money & Markets column this past week …
Today, GE said the finance unit will turn a profit in the first quarter of 2009. While this doesn’t prove that that the company is out of the woods, it does bring home my point that investors have been over-reacting about that part of the business (and ignoring pretty much everything else about GE).
The shares are continuing to rally sharply on the news, as you’d expect.
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Hey Nilus you ever read this guy?
http://market-ticker.denninger.net/authors/2-Karl-Denninger/P4.html
Never had, but I just looked it over and I enjoy the commentary. Thanks for the link!
Let’s not forget the Billions they borrowed from Buffet at 11% and preferred shares as security with no dilution in order to make this profit.
Whats your verdict on GE’s operations in India and other Asian countries?
Hi, Arihant. I think the company has a great opportunity to capture large infrastructure projects across the region. And I’d point to the recent $300-million contract in China — to build out natural gas pipelines — as a solid example. Whatever way the global economy heads, China is sitting on tons of cash and will deploy that for building up its country. That bodes well.
Regarding India, I am planning on spending a month there later this year and I will be looking very closely at what is taking place on the ground, especially now that things have cooled around the world …