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(GE) CEO Larry Culp voted with his wallet, buying GE stock for the second time this week as shares plunged on accounting fraud accusations. GE stock rallied Friday after Thursday's plunge, as short-seller Citron Research revealed it bought the dip too and Wall Street sprang to the industrial giant's defense.XCitron Research on Friday slammed accounting expert Harry Markopolos' report accusing GE of a decades-long accounting fraud. That report included a long disclaimer, which Citron took particular issue with. "As noted in the disclaimer on his site, Harry is being paid a % of profits from an unnamed hedge fund that is short GE. No credible hedge fund or short seller would ever do this," Citron said about Markopolos's GE report.Citron added "the greatest hedge fund manager in history" — a reference to billionaire Stan Druckenmiller — bought the plunge in GE stock Thursday. So did Citron itself, the firm said.And so did GE CEO Culp, who paid nearly $2 million for 252,000 more shares, at an average price of $7.93 per share, Thursday. The losses came after a Bernie Madoff whistleblower accused GE of a "a decadeslong accounting fraud" in an online report.General Electric denied the claim, decrying the report as "market manipulation" by parties with an interest in short selling GE stock.Culp's purchase Thursday, disclosed after the market close, served to reiterate his confidence in General Electric's long-term strengths and its progress in a multiyear transformation. On Tuesday, SEC filings showed Culp paid $3 million for 331,684 General Electric shares, at a price of $9.04 per share.Meanwhile, William Blair analyst Nicholas Heymann dismissed the idea that GE deliberately misrepresents its financial condition and Citi analyst Andrew Kaplowitz found "sufficient shortcomings" in accounting expert Harry Markopolos' report itself.Their views echoed those of analyst Jim Corridore of CFRA Research, who on Thursday highlighted "increased openness" in GE's accounting under Culp after "years of financial opaqueness" under his predecessor.But GE does face an investigation into its accounting. The SEC and Justice Department are probing GE's accounting of its insurance and power units. The company has denied accounting fraud in response to lawsuits and has mulled switching from longtime auditor KPMG.GE Stock Still Below Key Technical LevelsGE stock rallied 9.7% to 8.79 on the stock market today, following Thursday's dive. Shares remain below the 50-day and 200-day moving averages.The relative strength line, which tracks a stock's performance vs. the S&P 500 index, plunged Thursday, approaching December's long-term low. The RS line is the blue line in the chart below.That follows a huge dive in the RS line from early 2016 and, longer term, from the 2001 peak.Shares of Dow Jones
stock and industrial conglomerate United Technologies (UTX) added 1.1%, while Honeywell (HON) rose 1.7% and 3M (MMM) advanced 3%.YOU MAY ALSO LIKE: Is GE Stock A Buy Right Now? Here's What Earnings, Chart SayStocks To Watch: Top-Rated IPOs, Big Caps And Growth StocksBest Growth Stocks To Buy And Watch: See Updates To IBD Stock ListsIBD Stock Of The DayCatch The Next Big Winning Stock With MarketSmithThe post Even This Feared Short-Seller Doesn't Buy GE Accounting Fraud Claims appeared first on Investor's Business Daily. Weiter zum vollständigen Artikel bei "Investors Business Daily"
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