Matt Nesto report gives boost
to CNBC’s coverage of GE
Posted Tuesday, March 3, 2009
CNBCfix.com was critical over the weekend of the CNBC reporting on the General Electric dividend cut.
On Tuesday, Matt Nesto addressed the company's recent slide on "Closing Bell," hosted by Rebecca Jarvis in place of Maria Bartiromo.
Nesto's segment was concise, well done, and an example of the kind of reporting that was lacking Friday.
Nesto mentioned the "unbelievable slide" in the stock, "one that doesn't really seem to be slowing down."
He said there is some belief that a rating cut is already priced into the stock, and that there was "some hope" of help — from management or investors, he did not say — from the dividend cut, which perhaps would lift the stock by freeing up cash. "Au contraire — the dividend cut appears to have raised just as many, uh, concern— questions as it answers," he said, a point not raised in several CNBC segments Friday, but raised on this site and others.
Nesto pointed out that UBS was "reiterating its short-term sell," albeit with a $12 price target (CNBCfix can't figure that one out either). He said the stock is "down 23% just in this week alone."
He said he has exchanged e-mail with GE spokesmen and delivered their response, specifically a healthy cash position.
Nesto previously really only caught the attention of CNBCfix a month or two ago in an amusing moment when he waltzed into a segment by Dylan Ratigan on the floor of the NYSE, apparently the result of different producers scheduling reports at the same time from two reporters at the same spot, causing a confused and frustrated Ratigan to throw up his hands and step aside.
His GE report Tuesday on Jarvis' show was to the point, professional, and an example of how a journalism entity can and should provide straightforward coverage of troubles at its parent company.
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