GE shares hit new five-year low on financial jitters
By Christopher Hinton, MarketWatch
Last update: 12:08 p.m. EDT Sept. 16, 2008Comments: 3NEW YORK (MarketWatch) --
Shares of General Electric Co. fell to a five-year low early Tuesday following the prior-day collapse of Lehman Brothers Holdings Inc. and the potential bankruptcy of American International Group Inc.
The Fairfield, Conn., conglomerate operates one of the largest financial-services companies in the U.S., making up about 45% of its overall business, with the rest coming from its industrial products and services side.
Shares plunged nearly 10% in early trading to bottom at $22.16, its lowest point since March 2003. Later in the morning, however, the stock rose back to $25 on word the U.S. government may consider funding for AIG to help keep the insurer solvent. See full story.
GE (GE:General Electric Company
GE 24.65, +0.05, +0.2%) reaffirmed its real-estate forecast over the weekend, but did not reaffirm its aggregate earnings-per-share estimate, suggesting some risk for the quarter, according to Jeffrey Sprague, an analyst with Citi Investment Research.
In April, GE missed its first-quarter earnings estimate when the Bear Stearns failure choked the credit markets, making it difficult for the company to sell assets, particularly in its real-estate business.
Now, with the failure of Lehman (LEH:Lehman Brothers Holdings Inc
oncerns are being raised about another GE miss, Sprague wrote in a note to investors.
GE Capital has about 25% of its assets exposed to commercial real estate and residential mortgages, with all of its residential mortgages outside of the U.S., Sprague said.
"GE's diversity is helping it navigate the turmoil relatively well, but we see EPS risk," he said, maintaining his hold rating on the stock
Naja,mit "GE Capital" ist man auch im finanzsektor aktiv,möglicherweise der Grund für das 5-Jahrestief,so würde ich mal vermuten,dennoch: Viel spass beim einkauf,wer "Grips" in der birne hat,der schlägt jetzt kräftig zu,das hat man bei GE heute morgen auch bereits gesehen,dass da bei 22 dollar massiv gekauft wurde ... !