General Electric Company (GE)

[Porgie Tirebiter]

24 hours ago GE's market cap was $250 billion. This morning it's $280 billion. That's a $30 billion increase in a day.

A price of $30 per share would represent a market cap of $303 billion, an increase of $50 billion (the size of the buy-back authorization) in the market cap.

So is GE worth $30 a share? No, for the simple reason that GE Capital will no longer be contributing to the bottom line at some point down the road.

Will expansion in the industrial side make up for the difference? One can hope so, but that won't happen fast.

I think share price in the high $20s is not a bad guess by the market for GE's shares in the near term.

For GE to re-purchase shares at $30 would make no sense at all whatsoever. Note that GE got a debt downgrade from Moody's this morning over the buy-back announcement.

Look, I ain't fighting anything. I've made a ton off GE. But $40 per share makes no mathematical sense for the near term.