With Stock In Free-Fall General Electric (GE) Sends Out APB to Executives - "Buy The Stock!"
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With its stock in free-fall today, despite Friday's 68% dividend cut, General Electric (NYSE: GE) must have sent out an All Points Bulletin (APB) to executives telling them to buy as much stock as they could.
Four GE executives did disclose insider purchases today, and more may be coming:
- Chairman/CEO Jeffrey Immelt bought 50,000 shares today at $8.26, bringing his stake to 1,748,516
- GE Capital CEO Michael Neal bought 75,000 shares today at $7.90 and $7.59, bringing his stake to 782,271
- Director Ralph Larsen bought 30,000 shares today at $7.65, bringing his stake to 165,284
- Director Claudio Gonzalez bought 20,000 shares today at $7.75, bringing his stake to 335,269
The insider buying was clearly an attempt at a confidence builder, trying to send the message "GE isn't going anywhere, we will weather this storm". But investors didn't buy into it, with the stock selling-off nearly 11% today.
Investors appear to have a lack of confidence in management, with the dividend cut coming just months after the company vigorously defended it. Investors are mad and voting with their feet.
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Comments
This is a BAD economic time.
Listen to Rush and we will have 80 percent unemployment.. Do you kn ow about civil unrest! Listen to the economist not the entertainers like Rush
Market
Yes, I agree with the buy but with the market in a free fall you could be right but still loose it all! The govt. needs to step into the game and act like they know what they are doing (something that hasn't been seen since they have taken office).
ge and the banks
GE, should have cut its dividend months ago. I applaud them for holding on. Now, they will have to take a defensive mode, with this new congress. It seems that professional money making businesses is something that this new congress dislikes. Why shouldn't the banks make money. Have you ever thought what the world would be like without the banks. I guess, then, that we would be socialists. Hasn't history taught us what is going to happen. Listen to Rush, Shaun and Mark, get educated. Get rid of Kramer and Ludlow.
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GE & Commercial Real Estate
Trudy Sword on Mar 5, 2009 02:24 AMGE Capital is not a bank. It is primarily a commercial real estate lender. (The biggest unknown.) It also has a thankfully small consumer credit specialty market, GE Money. (Store brand credit cards.) GE needs to get together a statement on what the REST of the company is worth, & discount GE Capital to 30% - zero for the time being. The problem is there is no way to know how much of the commercial real estate "shake out" will occur during the recession. How many companies will be left in any given building or center when this is all over is the question. Because of the way commercial mortgages are written much of the value of the property is in the sales/traffic/revenue, etc. Generally interest only payments are made for 7 to 10 years, at which time the property is revalued and refinanced (taking out all the equity.) So, these commerical properties are always fully leveraged. Because of the way commercial RE is valued without the leases and/or sales they are just a piece of land with a building on it. The money is in the lease. Leases gone, value gone. Secondary to that is the mini credit card industry they have. I am sure there will be some fallout there with bad consumer debt. But nothing compared to the potential on the RE. Additionally, they do a lot of financing of large equipment and industry. Not too much going on there I wouldn't think. Not much positive or negative. Hey, here's an idea! I'm thinkin they should have stuck to light bulbs and toasters.