Another day, another dollar.
GE Sell Off Is Overdone
The Stock Market had another sell-off kind of day. On the bright side closing well off its lows for the day. One of the biggest losers of the day was GE. Why? Because of Japan’s nuclear power plant situation and the fact that GE was one who supplied the reactors at the stricken nuclear plants.
All of this though has no real impact on GE as a hold because GE itself is so massive. The company has its hand in everything imaginable. The sell-off today and what may continue into tomorrow with the recent worsening of the nuclear situation, is not going to effect GE as much as investors are making it seem.
GE’s last quarter was much better than the analysts predicted and gave really optimistic outlook. To me, nothings really changed. All of GE’s other business are getting more than enough orders to cover any slow down in its nuclear reactor segment. I plan on adding to my long position tomorrow with the selling that is likely to continue tomorrow morning.
Having said that, I’m hoping for the best. The country been through more than enough the past few days and doesn’t need to add a nuclear meltdown to the equation.
Update: GE’s nuclear business is only 0.66% of its total revenue and has no liability to the nuclear reactors in Japan under Japanese law.
Stock markets fell further and faster after the Enron and WorldCom scandals than they did after the terrorist attacks of September 11, telling us that what the market fears most is not a terrorist attack from without but a moral corruption from within.
Michael Ramsden, from this lecture on the current market crisis (via davereed)
