Wall St. might make the argument that GE (GE) has more exposure to the credit markets than most huge companies because of its financial division. But, the current hammering of the shares may have gotten out of hand.
GE’s stock is off 6% today to $26.47, not that far above their 52-week low.
Because GE’s most significant businesses are part of its infrastructure operation, investors would have to make the case that the core of the firm’s growth is breaking. The conglomerate has said that the large developing countries in Asia and the region in and around India will keep GE’s most critical businesses expanding at double-digit rates.
According to Reuters, GE infrastructure unit, GE Infrastructure, said it will maintain its business growth forecast of 10-15 percent for 2008, despite rising costs.
If GE makes those numbers, the financial unit’s performance would have to be a disaster to justify the current sell-off in the stock.
Douglas A. McIntyre
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