Traders Using Immelt's GE Capital Comments as a 'Sell the News' Event
After opening about 1% higher this morning on reports that CEO Jeff Immelt believes GE Capital is significantly undervalued, shares of General Electric (NYSE: GE) are now selling-off, currently down more than 1% to $11.73.
Initially, media outlets inaccurately reported that Immelt made comments on PBS last night saying that GE Capital is worth $10-$20 billion. While the correct comments were not necessarily more positive or negative, traders began selling the stock as sources started getting out the right news: that Immelt noted that at its peak, GE Capital was valued around $150-$200 billion, but the market is now valuing it around $10-$20 billion. Immelt said that while GE Capital might not worth $200 billion, it is definitely worth more than $20 billion.
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