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Friday, July 14, 2006

Most Widely Traded 48 Hour Clock: GE After Its Earnings

24/7 Wall St. has begun coverage of the 36 most widely traded stocks, eighteen each from the NYSE and the NASDAQ. Most of these stocks trade over 50 million shares a week. This new feature will highlight each of the 36 stocks at least every 48 hours giving investors fresh infomation and perspective on the companies whose shares are most likely to move the broader markets.

General Electric (GE) had indicated higher after earnings met expectations and revenues slightly exceeded expectations. The company also maintained its guidance for the year and put Q3 EPS at $0.48 to $0.50, although the street is looking for EPS of $0.50 on a rounded up estimate. The company showed in their presentation that it is expecting double-digit profit growth in most sectors of its core operations, except for its NBC unit. It is looking for those gains in its Infrastructure, Healthcare, Industrial, Commercial Finance, and Consumer Finance units. The dog is its NBC unit, where the company is seeing a decline in profits. GE was one of the issues that helped the futures this morning, but now the shares are actually down about 0.6% with a last trade seen at $32.45. We noted earlier in the week that the street has been treating this as dead money, and they are putting this at the lower-end of a longer-term trading band. The valuation of GE compared to the S&P and maybe even to 3M (MMM) is an ongoing discussion. Is this fair? FAIRNESS is rarely a factor in the markets and that doesn't look much different so far this morning.

Shares of 3M (MMM) have not reflected any significant change pre-market.
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