Long note from JP Morgan on our parent company, GE . Morgan downgrades GE; they also cut estimates for 2009 (to $2.30 in 2009 versus $2.42 previously and a consensus of $2.44).
Some highlights from the report:
--"Despite a valuation that now discounts bad news and an attractive story for the patient, long-term buyer, we can no longer recommend GE as we see further earnings risk and dislocation from necessary portfolio management in 2009."
--"Credibility is now damaged, and we are hard pressed to see a re-ignition in investor interest without more transparency. This, we think, can only be driven by a more simplified structure."
--"We think there should be further cuts at some stage over the next 2 years. Most of the developed markets assets in GE Money could go, with the rest folded into Commercial Finance. NBCU could be broken up and sold in pieces, giving prime-time some room to recover. It's even debatable that Healthcare should remain in the portfolio."
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