GE Misses and Gets Downgraded
CON-fidence and credibility...
Goldman Sachs downgraded shares of General Electric to "neutral," saying the company's surprise first-quarter profit decline raises "credibility concerns."
On March 13, GE's CEO Jeffrey Immelt told investors there was no reason to lower his expectations for earnings growth this year.
Today, The worlds third largest company missed revenue estimates and provided a disappointing outlook for 2008.
GE's shares are down 12%, marking the largest one-day percent decline since the 17.5% drop on 1987's Black Monday.
Immelt said that the drop in earnings came without warning after GE was forced to
cut the value of some investments in the last two weeks of March as capital markets seized up.
The Nattering One wonders... what type of investments could those be? Real Estate or derivatives based on mortgage backed securities?
Goldman Sachs downgraded shares of General Electric to "neutral," saying the company's surprise first-quarter profit decline raises "credibility concerns."
On March 13, GE's CEO Jeffrey Immelt told investors there was no reason to lower his expectations for earnings growth this year.
Today, The worlds third largest company missed revenue estimates and provided a disappointing outlook for 2008.
GE's shares are down 12%, marking the largest one-day percent decline since the 17.5% drop on 1987's Black Monday.
Immelt said that the drop in earnings came without warning after GE was forced to
cut the value of some investments in the last two weeks of March as capital markets seized up.
The Nattering One wonders... what type of investments could those be? Real Estate or derivatives based on mortgage backed securities?
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