What a Wells Notice Means for GE
It may not be as bad as it looks.
General Electric’s (GE) 8-K filing on Oct. 6 disclosed that the U.S. Securities and Exchange Commission issued a Wells notice on Sept. 30 for possible violations of securities laws. The shares dipped over 5% upon the filing, implying that the market feared a loss of over $3 billion. While the stock has nearly recovered, we believe the initial sell-off was an overreaction and therefore leave our $9.60 fair value estimate intact.
While we don’t believe GE has a legal duty to disclose Wells notices, we’re glad it did.
Joshua Aguilar does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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