Originally Posted by clifp
It is an interesting article. One of the things that is worth noting is even if GE capital is levered at 8 to 1 ratio that far less than a typical bank at 12 to 14-1.
It is also backed by the assets of rest of the GE conglomerate which are considerable. Still I think it is fair to wonder if it really deserves a AAA credit rating.
On the other it is yielding almost 10% and has PE of around 6 to 7.
That's a well-written analysis, and a pleasure to read after some of the dreck that's been floating around on Seeking Alpha.
I especially like this part:
A GE collapse would not bring good things to life. It would bring about the mother of all bailouts.
However this part:
should probably be edited to read:
"I've shorted this stock with everything I can get on margin and doubled down with options!"