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General Electric gets crushed, again — here's what three experts say may come next

General Electric shares plunge below $8 — Here's what four experts say to expect next
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GE shares plunge below $8 — Here's what four experts say to expect

Shares of General Electric plunged on Monday to their lowest level since March 2009, extending the stock's severe losses from the prior session.

As GE briefly broke below $8 per share, experts told CNBC what investors might expect next.

  • Shawn Matthews, CEO of Hondius Capital Management, addressed General Electric's debt load and how comments about the company's liquidity unnerves investors. "Debt can be a powerful thing on the way up, and the way down. When people start talking about liquidity, that makes people incredibly scared from an investor class standpoint. So you start looking at the amount of distressed assets that there are out there. They're getting bigger. As we talked about last time, triple-Bs are four times as big as they were in the last cycle; this is going to be an issue as we move forward." He added that the Federal Reserve's planned tightening path certainly doesn't help the stock. He said, "When you were at zero interest rates, and you thought you were going to be there for a long time, there was much more money that was willing to participate in riskier assets. That's changing as interest rates have backed up," he said.
  • John Inch, analyst with Gordon Haskett, said, "Maybe they are fine for the very short term, but the problem is the stock market senses when companies are requiring to raise equity capital, and it becomes a self-fulfilling prophecy or spiral on the way down. So there's a lot that we don't know, and there's a lot that the company doesn't know. They've suspended guidance, and the company is only earning 25 to 30 cents of free cash this year. That doesn't suggest the stock is worth much more than $5 or $6, all else equal."
  • Justin Bergner, senior analyst at Gabelli & Co., has a much different view on the stock than many analysts on Wall Street. He said, "I have a positive view on the stock. I think people miss the big picture here, which is you have a good management team. You have high-quality assets at GE in aviation and health care. You have a stock trading at a big discount to its asset value. We see over $11 per share of value for health care and aviation alone, after all of the liabilities in the company, and we think there are more liquidity options than meets the eye."