After the recent market's overreaction to bellwether General Electric, I was seriously considering purchasing stock in the company. On Friday, April 11th, General Electric's earnings per share fell 8% from a year ago missing analysts estimates causing an immediate and precipitous drop in the stock price by 13%. The problems with GE are temporary, the fundamentals are sound, the price had fallen and the yield on GE is 3.69%,
But I then found out GE is doing business with the enemy, Iran.
February 2005, the Wall Street Journal stated:
General Electric Co. is the latest company to decide to stop seeking business in Iran, amid an increasingly tense political situation there.
The company, which has been criticized by Sen. Frank Lautenberg (D., N.J.) for taking "blood money" from a country that sponsors terrorism, is the biggest U.S. company with operations in Iran. U.S. companies are barred from directly doing business in Iran, although foreign subsidiaries can work there. In addition, U.S. law calls for imposing tough sanctions on foreign companies that make significant investments in Iran's energy sector.
However, Fox News has uncovered General Electric continues to do business with Iran at a time when Iran is killing Americans:
But General Electric CEO Jeffrey Immelt does not seem to care about the damage Iran is doing to America and the world. As we've reported, Immelt has allowed GE to do business with Iran for years.
Apartheid in South Africa was brought down as a direct result of the divestment movement from companies in South Africa. Where is that same movement now? Why are we not doing that now? Iranians kill Americans and its business as usual.
Something doesn't make sense.