GE Rises as Gabelli Spots Buying Opportunity in Share Plunge
GE Rises as Gabelli Spots Buying Opportunity in Share Plunge
(Bloomberg) -- General Electric Co.’s stock-market plunge is attracting a big-name bargain hunter.
Mario Gabelli of Gamco Investors Inc. said he’s buying on the latest decline, sending shares higher. GE has a strong management team and a stock price that could be higher than $20 in two years, Gabelli said Monday in an interview with CNBC. That would represent a gain of about 25 percent from the closing price Jan. 26.
The Monday advance is poised to halt a three-day slide that began last week after GE said its accounting practices were under investigation by the U.S. Securities and Exchange Commission. The probe piled new pressure on GE Chief Executive Officer John Flannery, who’s trying to engineer a turnaround after a year of management turmoil, cash-flow concerns and falling demand for power equipment and locomotives.
GE climbed 1.5 percent to $16.37 at 2:00 p.m. in New York, after reversing earlier declines. The shares fell 7.6 percent this year through Jan. 26, the biggest drop on the Dow Jones Industrial Average. The company also brought up the rear among Dow industrials last year, with a 45 percent plunge.
To contact the reporter on this story: Brendan Case in Dallas at bcase4@bloomberg.net.
To contact the editor responsible for this story: Brendan Case at bcase4@bloomberg.net.
©2018 Bloomberg L.P.