April 11, 2008

We have been watching GE to short due to its massive exposure to the financial sector, but did not push the trigger due to its long cycle businesses being in great shape. This earning announcement will cause the markets to question GE’ conglomerate structure over the next few months , but then the shares may bounce back at the prospect of break up or massive divestitures.

Short on any bounces here in low to mid thirties and cover in mid twenties.