GE Stock Lower Than Day It Revealed GE Capital Sale, Buyback Program
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
General Electric Company (NYSE: GE) shares are trading sharply lower by $0.40 at $25.70. It is trading lower than its closing price on April 9 ($25.72), when the company pulled out all stops to boost its lagging share price.
On April 10, the company revealed the sale of GE Capital real estate assets for $26.5 billion and a new $50 billion buyback program. At that time, the short-term goal appeared to be achieved, as GE soared to $28.51 on the heels of the announcement.
Interestingly, that elevated level was never seen again, even on an intraday basis.
Instead, the issue meandered between $26.60 and $27.50 for the next few months. After failing at the top of range for good by only reaching $27.33 on July 17, the issue collapsed into the $25 handle for the first time since April 9.
Off the open, it found resistance just above Friday's close ($26.10), reaching $26.13 before swooning to $25.60.
If the decline continues over the next few days, there may not be any identifiable support until the low before the April 9 announcement was made.
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