Wednesday, October 1, 2008

GE Raising $15 Billion

Nothing bothers me more than lying analysts.  I am probably not as smart as most analysts, but one thing I promise is honesty.  That is the whole purpose of this blog. 

GE is raising $12 billion in common shares to public, and raising another $3 billion by selling preferred shares to Warren Buffett at 10% interest rate!  Yet Jim cramer claims there is no problem.  Hello?  That's $3 billion at 10%!  Remember that's what Lehman and other financial companies said when they raised capital - We are raising capital not that we need to.

“I don’t think there’s a company in the country that if they can raise cash shouldn’t do it right now,” he said.

It looks like he has it backwards.  No company would want to raise cash in this environment if it didn't have to.  This is absolutely the worse period to raise cash.  The fact they are trying to raise $12 billion shows their desperation.

Once again this is not something I am happy about.  I am just pointing out the lie that they don't need capital.


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This commentary in no way constitutes investment advice. It should never be relied on in making an investment decision, ever. Nor are these comments meant to be a solicitation of business in any way - such inquiries will not be responded to. This content is intended solely for the entertainment of the reader, and the author.  We may hold either long or short positions in securities of various companies discussed in the blog.  The information in blog may contain misspellings and other inaccuracies.  It is provided "As IS," without express or implied warranties of any kind.  HD represents all rights to the information.

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