For starters, he noted that the conglomerate has a mere $2.8 billion in tangible common equity as of March 31, 2009. The Buffett investment was not noted as a positive.
This firm has been a long-time bear in GE, otherwise we might not have ever considered even noting this one. It first recommended a short at $38.87. Ortel outlined the SEC Wells Notices, and noted the trouble being far more widespread than just GE Capital. You can watch the video if you choose, because Ortel sees only downside and said he would not want Jeff Immelt’s job ahead.
Ortel has many other reasons he is still very bearish. The FULL VIDEO is here. If GE heads back to $2.00, we’d hate to consider how low the market would be pulled down with it. So far, Wall Street is not buying this thesis. We have shares trading up about 0.5% at $11.07 with an hour until the open after closing at $11.01 yesterday.
JON C. OGG
JULY 8, 2009
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