Earnings were released a few days back, and they met and exceeded expectations. Oh, revenue has dropped a % or so, but, in the world we live in, everything can’t be full throttle forward.
My take on the current situation is that the shorts have found themselves in a position where they gambled that GR is going to fail at making good things happen. The shorts are a special kind of people because they have very deep pockets, but they do not want to loose money. If GE stock were to move to anot her level up-like AT&T did recently, they would be holding the bag on a big loss. So, it is my opinion that the analysts, who are probably tied to the shorts, are putting out bad press in the hopes of turning the stock on its head. Sounds like a great idea for the shorts, but if the investors who believe that GE is truly on its way to complete turnaround, it is just a blip in the road.
Earnings are going to come around, and GE is going to make tons of sales. When the numbers are compared (apples to apples) in the next few quarters, the stock should move to another level. In the meantime, the shorts are going to attempt to manipulate the stock. It can only happen for so long, and then, if the numbers come through, the shorts have to cover. They are in a catch 22. GE will be buying stock for quite a few quarters, and if the stock stays down, more shares will be taken off the table. Therefore, current shareholders have a better chance at seeing a bigger return.
I have been completely tied up lately, and have had little time or desire to write anything. I just figured I had to put this in writing so that I have some say in how my investments are performing. Make no mistake, the stock market is manipulated by people looking to gain on the fear of others. GE is going to be like a phoenix and rise from the ashes. It will take time, but it will be reborn. It will be a much more fine tuned company that is positioned for the future.