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GE: Shorting Victim?

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March 11, 2009 – Comments (2)

GE and short interest

I've seen a lot of claims lately that GE's a victim of shorting. I generally think these arguments are ridiculous. Here, for some context, is a graph of GE's share price, along with the total short interest as a proportion of average daily volume. (These figures come from the Nasdaq, in 2-week chunks.)

As you can see, there are several points where short interest as a proportion of volume drops precipitously, yet the stock price does as well. I'd say these results argue against the 1-1 relationship between shorting and price action that the whiny GE holders out there are trying to promote.

Sometimes the flies arrive because of a real stink. Sometimes, they're just passing through. Either way, if you think GE's share price is silly, you get a chance to buy it low here. Thank whomever you believe is responsible. 

2 Comments – Post Your Own

#1) On March 11, 2009 at 11:41 AM, SideShowMel0329 (57.89) wrote:

GE is being treated as a financial because of its financial arm, which is ridiculous because that is only a piece of its large, diversified business.

Buying GE at these prices is a steal - one of my top picks right now.

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#2) On March 11, 2009 at 11:50 AM, SharpSEO (68.05) wrote:

Somebody described GE to me as Siemens + WAMU. There are a lot of other companies I'd rather own.

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