In Depth: O’Reilly was Right? Maybe. But not the cause.
The Hollywood Reporter’s Paul Bond pens an opinion piece on GE’s Stock Price and Bill O’Reilly…
Despite the relentless nature of the tirades, there aren’t many on Wall Street who suggest O’Reilly has been the cause of GE’s free-falling stock. In fact, most experts dismiss it as partisan street theater, and they point out that shares of News Corp., parent of O’Reilly’s own network, also have been crushed.
The critics (and they are legion: Check out OReilly-Sucks.com to get a taste of the vitriol) have a point. But it’s also fair to note that News Corp. has outperformed GE in just about any time frame that begins on or after Sept. 7, 2001 — the day Immelt became CEO — and ended with Tuesday’s closing bell, even though GE rallied 26% in the past two days.
Since Immelt took over, GE stock has tanked 71%, compared with News Corp.’s 58% loss. So far this year, GE is off 53% to News Corp.’s 32% decline.
So detractors beware: As long as News Corp. keeps outperforming GE, criticism of O’Reilly and his stockpicking prowess will ring hollow.
Bond is usually a solid writer but this time he throws up a big air ball. To lay this all on O’Reilly or even hint that O’Reilly is the cause is vastly overstating things. There’s a thing or two that Bond doesn’t mention that affects GE far more than O’Reilly ever could and it’s also why a comparison of News Corp. stock price to GE stock price is lunacy.
The biggest drain on GE’s stock price has to do with GE’s Financial Arm, something Bond should know well since its been all over the news. News Corp. does not have that kind of a drain on its business (it has a totally different kind of drain…Rupert Murdoch’s obsession with newspapers and his willingness to overpay for them). To compare the two stock prices, given these circumstances, is a fool’s errand. It’s also why pushing an O’Reilly angle in GE’s stock price is at the very least a thin argument and at the very worst fool hardy.