April 19, 2010
– Comments (3) |
RELATED TICKERS: GE
My thoughts on GE's 1Q results, as they relate to the economy.
I welcome all constructive, informed criticism.
I am honestly not sure what kind of criticism you are looking for but this is what I have to offer? The obvious answer is that we are not in a recovery yet if you look at any bank that has reported earnings so far. Citigroup is pawning off it's assets just like GE is doing and if you look at the earnings for these companies of course the estimates are going to be up if they just hit rock bottom. "We didn't make a profit but we did better than last quarter" is all that means and it's all garbage. 9.7% unemployment and financial reform with higher capital gains taxes and an extended bill for unemployment benefits. I don't think you can look at just 1 company as assurance to where the market is headed.
I like GE long term, but am looking for a better entry point.
The financial sector is a drag and will be for a while, but they are reducing its size and in time it will likely be a better profit center than it currently is, and has been recently. They were affected like the big banks, but with, for all practical purposes, only a "retail" franchise, with out the "investment" side available to offset their problems in that area.
They need to do some restructuring across the whole spectrum, but when the economy "really" recovers, I believe they will do quite well.
JMO and worth exactly what I am charging for it.
Thanks for your comment.
I think we're finally seeing so-called "green shoots" in the economy. Of course, that is about a year on from the false sightings many observers were touting once the market began rallying off its March 2009 low.