THIS IS ONE DAY AFTER WE HAD
THE BEST MOVE INTO HALF YEARS
FOR THAT PARTICULAR PART OF
THE S&P.
FROM A NINE YEAR LOW TO BEING
THE LEADER ON THE DOW, YES WE
ARE TALKING ABOUT GENERAL
ELECTRIC CURRENTLY ON TRACK
FOR THE BIGGEST GAIN IN THREE
YEARS.
TODAY OF ALL DAYS.
UP ALMOST 4% THANKS TO THE
MENTION OF WARREN BUFFETT
POSSIBLY TAKING AN INTEREST IN
THE INDUSTRIAL GIANT.
WE BRING IN SOMEONE WHO HAS
FOLLOWED IT VERY CLOSELY,
CHARLIE YOU BEEN WORKING THE
PHONE, WHAT ARE YOU HEARING
ABOUT THE SPECULATION.
>> I'M JUST TO SAY THE SPREAD
WE HAVE A CALL INTO HIS OFFICE
BUT NO COMMENT AS OF NOW.
WARREN BUFFETT IS A BROKER SO
THAT PERSON WOULD KNOW WHETHER
HE BOUGHT SOME OF THESE SHARES
BUT I DID TALK A LOT OF
INVESTMENT BAKERS ON WALL
STREET AND THEIR SOMEWHAT
DUBIOUS THAT HE'S GETTING
INVOLVED.
HERE'S WHY.
IF YOU BELIEVE GE STILL HAS
MORE BAD STUFF TO COME, IT
DOES HAVE A MASSIVE UNFUNDED
PENSION LIABILITY.
IT'S VERY BIG.
THAT SOMETHING THAT WOULD
SCARE SOMETHING LIKE BUFFETT.
>> YESTERDAY, EVERYTHING WAS
UP AND GE WAS THE ONE DOW
COMPONENT DOWN BECAUSE OF
HIDDEN RISKS.
>> YES, THAT IS A HIDDEN
RISK.
THE OTHER IS THE BUSINESS
MODEL.
WILL THIS MODEL PRODUCE ENOUGH
CASH FLOW TO PAY FOR DIVIDENDS
AND THE PENSION LIABILITIES
AND SHOW, PUSH ENOUGH GROWTH
IN THE STOCK.
GENERALLY, I'VE SPOKEN WITH
BANKERS AT J.P. MORGAN IN
OTHER PLACES, I SAID GIVE ME
WHAT HE USUALLY DOES.
HE GENERALLY BUYS STOCK THAT
HE KNOWS ARE BEATEN-DOWN SO
MUCH AND ALL THE BAD NEWS IS
OUT.
IF YOU LOOK AT WHAT HE DID, IT
WAS GE DURING THE FINANCIAL
CRISIS WHEN HE CAME IN.
DIDN'T COME IN DURING THE
FINANCIAL CRISIS AND IT WAS AT
EIGHT DOLLARS A SHARE AND GOT
A GOOD DEAL.
AND HE KNEW THAT THE FEDERAL
GOVERNMENT WAS LIKELY TO BAIL
HIM OUT.
WHICH THEY DID AND GE WAS PART
OF THAT BAILOUT.