By Paul Larson (TMF Parlay)

First of all, yes, GE does have over $300 billion in liabilities, but the vast majority of this is not really "debt" in the traditional sense. Being a major, major player in the corporate financial services and insurance industries, it is not surprising to see large numbers on the liabilities side of the balance sheet. As a lender, it borrows money at low rates -- say, at 7% -- that it then turns around to loan out to other companies -- at 10%, for example. It's a highly profitable business for GE that wouldn't be as large as it is without this "debt."

Although Rick might have you thinking otherwise, just because a market may be mature does not mean that it is worthless. In fact, many of GE's businesses are cash cows, generating copious amounts of cash that can be invested into new, higher-growth businesses. After all, GE's appliance and light bulb businesses matured decades ago, but that hasn't stopped GE from growing year in and year out.

When you have as many businesses as GE has, it's pretty easy to find a handful of weak spots, such as Rick did with NBC. I won't argue that every single GE business is hitting on all cylinders, but the company's portfolio, on balance, remains quite healthy. Even a vibrant forest is bound to have a struggling tree or two, and Rick is trying to get you to look beyond the bigger picture.

GE's overall growth will certainly not be anything to get too terribly excited about, as Rick pointed out. However, remember that GE's profits are set to explode if the company's Internet strategy for reducing manufacturing costs pans out. It is very likely that GE's bottom-line growth will far eclipse its topline growth over the next half dozen years as the company's profit margins grow even higher than they already are.

When Jack Welch retires, it will certainly be a loss for the company. But if GE were a university, it would be the Harvard of business management. There is a reason that hundreds of today's most sought-after CEOs started their careers at GE. The company has an army of extremely capable managers that has been indoctrinated in the GE way and educated by Jack Welch. Besides, Jack Welch is only 65 and could easily come back in the unlikely circumstance his successor messed up. Plans for Welch's retirement have been in the works for moons, and it looks to be a smooth transition.

Is GE overvalued, as Rick insinuates? Jack Welch is famous for saying that no company's stock can ever be overvalued because the company can turn around and use their stock to acquire other businesses. GE has been gobbling up other businesses for decades now using its stock, and it's been a highly successful modus operandi.

Rick also correctly pointed out that GE's share growth has outpaced its profit growth recently. Perhaps the market is just being more efficient in realizing GE's true value. GE is not a company that will double inside a year, but its solid core of businesses generating great deals of cash ensures that over the long term, shareholders will continue to be amply rewarded. Top-shelf companies rarely come on the cheap, yet they rarely disappoint.

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