GE stock stumbles to lowest point since 2003

Shares fell to $28.38 Monday, their lowest level since Nov. 17, 2003, when they traded at $27.67. The stock rebounded later in the session to close at $28.97, down 18 cents.

The drop for the industrial conglomerate--which makes jet engines, railroad locomotives, water treatment plants, household appliances and owns NBC television--came as JPMorgan's C. Stephen Tusa Jr. cut GE to "neutral" from "overweight."

"Despite a valuation that now discounts bad news and an attractive story for the patient, long-term buyer, we can no longer recommend GE," Tusa wrote in a note to investors.

GE spokesman Russell Wilkerson said the company does not comment on analyst notes.

Tusa predicted difficulties for Fairfield-based GE's operations, particularly slower sales for its aviation unit amid capacity cuts at U.S. airlines. He also predicted lower income from GE's real estate operations on challenges in the real estate market.

In addition, the analyst saw struggles for NBC Universal on weaker advertising sales, while its industrial segment could also see slower sales.

Still, Tusa said the company continues to have attractive assets and talented management that could move the company forward if it were restructured properly.

He said GE must be more transparent with Wall Street to increase its stock price, particularly after GE shocked analysts and shareholders in April by missing its earnings target and reporting a 6 percent drop in first-quarter earnings to $4.3 billion. GE lowered its 2008 outlook for earnings from $2.42 to between $2.20 and $2.30 per share.

That triggered a sell-off that wiped out more than $46 billion of GE's market capitalization and prompted CEO Jeff Immelt to announce weekly reviews of all GE businesses to make forecasts more accurate.