There seems to be wide spread consensus that GE is doomed. My take on GE is that it was $40/ share in the spring of '08. Lets just say it was fairly valued. Half of GE is the finance wing, so say the stock should be $20/ share. Then lets say half of the remaining business evaporated, the stock should be $10/ share. Just about where it is now. Now if any of those reversals turn out not as dire as I've described then the stock seems (to me) to be undervalued.
The finance portion of GE is not a retail bank. Billy bob does not go to GE to get a loan on a 3br ranch. (using documents he's forged on the INTERNET) They make locomotives, co-gen plants , MRI machines, ect. and if you want to buy one of these, no problem. Sign right here.
Every company has a "story" which is the total of the balance sheet, quality of the management, how the companies products or services are perceived in the market place, ect. . This story is not static, it changes and has to be reviewed.
My "logic" is to Buy low, Sell high. Easy to say (or type) but hard to do. This means to me that I need to look at stocks that have been beaten down, or ignored by the "herd".
The only reason I even comment in this thread is because I took a position in GE in Oct. and Dec. '08. (yes I'm down). I used the cash I had sitting in an IRA from the sale of mutual fund I'd held since '88. Also no one I know would be knowledgeable on this subject to care or even disagree. I tend to learn more from people who have a different point of view.
If GE ceases to exist it would hurt but I would not be ruined. I understand the danger falling in love with a stock and I'm not "all in".
I could be wrong as I've been wrong before. I never cease to amaze myself in my ability to be creative in making mistakes.
With some due diligence I've been able to limit their number and severity.
Now GE could go down the tubes. The country could go the tubes. The world could degenerate into some post apocalyptic scene from Mad Max, but its more fun to be an optimist.
Now if you will excuse me I'm going to go count the MRE's FEMA gave me (IKE) and clean my guns.