WSJ Says Panic Selling in GE (GE) Overdone

The Wall Street Journal is out with an article this morning saying that concerns about General Electric's (NYSE: GE) Capital arm are overdone. Over the last week or so, shares of GE have fallen more than 16% as the credit markets began seizing up.

GE Capital, which now makes up about half of the company's profits, has a debt-to-equity ratio under 8x, which the WSJ calls "a multiple most Wall Street banks would die for." The article also points out that GE's business model of originating and holding loans limits swings caused by quarterly marks on these assets. GE has also raised about $70 billion in capital, just $10 billion shy of its $80 billion target.

Despite these positives, the article points out that GE's stock has fallen more than comparable stocks this year: shares are down more than 30%, while a weighted average of similar stocks has only fallen 21% so far in '08.

General Electric Company operates as a technology, media, and financial services company worldwide.

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