Are there any fundamental reasons why the stock of a company like General Electric would keep going down ?

Question

I can not imagine that "most" of their business is from lending.

Answer 1

A lot of their money comes from GE capital, which like the banks has not done well lately.  Immelt missed the number in 1Q so the stock got a haircut.  I think its a decent buy right now.  Bought some last week for a long term hold.

Answer 2

Profit margins getting squeezed.

Answer 3

The majority of their business is lending - GE Capital. Not the place you want to be investing in right now.

Answer 4

Lower profits.

Answer 5

Nope, it is going down with the market, but it is a strong company, and will come back up, if you like it like I do, buy more now while it is on sale and collect 4.6% yield on your investment while waiting for it to go back up.

It is a great investment.

Answer 6

The fundamental reason is a lack of faith in the company. (supply and demand of the stock.)

I've actually recently added this one to my portfolio. It is still making money, and doing smart things like spinning off its less profitable divisions.

There are many fundamental reasons this stock is good, and while you might not get a tremendous amount of upside anytime soon, it pays a dividend and I see very limited downside.   --- which in the current environment is a really good place to be.