General Electric

[The_Hill]

GE's stock hasn't been this low in about 5 years. It has a low PE of about 13, and its President has recently invested millions of dollars when the stock was around 31, and once again when it fell to around 29, a good sign that the company will preform. Any thoughts? Seems like a steal to me under 30 dollars...

[The Marmot]

Looks like a pretty good buy to me. They also have a good dividend right now at 4.3%. One thing to watch for in the near future.... they could get dinged with the airline industry in such turmoil.

[BlackKnightHogFan]

Looks like a pretty good buy to me. They also have a good dividend right now at 4.3%. One thing to watch for in the near future.... they could get dinged with the airline industry in such turmoil.

T Boone Pickens just placed the largest order in history from GE for windmills and don't forget they have one of the largest financial services company in the world...Genworth Financial

[The Marmot]

T Boone Pickens just placed the largest order in history from GE for windmills and don't forget they have one of the largest financial services company in the world...Genworth Financial

Forgot about the Pickens order.... good call.

[Masshog]

You have a stock that is breaking down (in fact the decline is accelerating) to roughly a new five year low, taking out intermediate supports and doing so on wide weekly price spreads and increasing volume.  It is doing this against a backdrop of general market weakness despite which it is actually weaker than the broader market (in relative strength terms). 

I think the recent declines have more to do with the exposure to financials, after the last quarterly earnings many mangers starting viewing GE as a financial... and probably rightly so.  Not saying it might not be a good long term risk, but the odds of attaining a better entry are pretty good.  Of course, I'm wrong a lot so listen at your own risk. 

From Yahoo:
The company's Commercial Finance segment provides loans, leases, and other financial services to manufacturers, distributors, and end-users for various equipment and capital assets. It also provides capital and investment solutions. Its GE Money segment offers credit cards, loans, mortgages, and deposit and savings products to consumers and retailers

[Masshog]

One other point, I have been in near 100% cash for most of the last year.  One of the few positions I do own right now is a very small one in GE purchased just a few weeks ago as the first leg in a longer term accumulation strategy.  I love their lead in water tech.     

[The Marmot]

One other point, I have been in near 100% cash for most of the last year.  One of the few positions I do own right now is a very small one in GE purchased just a few weeks ago as the first leg in a longer term accumulation strategy.  I love their lead in water tech.    

When you say "100% cash", I'm assuming you mean money-market accts, CDs, T-Bills, etc. Is this correct?

[Masshog]

Yes.  Not invested in equity.  But I should probably make one thing clear.... my income depends a large part on how well the stock market does.  Even when I'm not invested in the equity market, I am still very exposed to the fortunes of the equity market. 

[SultanofSwine]

I hope you are not talking about EIA's.

[Masshog]

 ..  I wasn't. 

[The Marmot]

EIA's?

[SultanofSwine]

Equity indexed annuities. I think of them in a similar light to what the Waterboy's mother did fooseball.

[san1981]

GE is dead money IMO. GE needs a management shake-up. They are looking to sell their appliance business at time when business is at a all time low. Bring up a 5 year chart and your investment is right at 0% (I'm not taking into account for their dividends). For a nice dividend, look at RAI...pays a 6.60% and is at a 52-week low. Great time to buy and only trading at a 9.9 PE ratio. Don't get caught up in the name of the stock...get caught up by the performance of the stock.

[Masshog]

EIA's?

Thought it was something entirely different.... but I still wasn't talking about them. 

[Masshog]

A quick glance at the RAI chart isn't very encouraging.  Its given up about 1/3 of its value in the last few months and shows no sign of demand (at least at a quick glance).  One of my hard and fast rules is that a stock has to be able to at least show an ability to rally (in other words someone has to show interest in owning it) before I will buy.  Not a judgment on long term value, simply a judgment on entry timing.  Of course, it could turn around and rally like a stripedy assed ape tomorrow, but thats not what the odds are. 

I didn't take time to run a RAI/SP ratio, but I would guess having given up a third of its value that it is much weaker than the market as whole... and it isn't even a financial.  OF course, I'm wrong a lot.

[san1981]

Here's a 5 year comparison of RAI to the SP

http://finance.yahoo.com/q/bc?t=5y&s=RAI&l=on&z=m&q=l&c=&c=%5EGSPC

Not to bad, plus the nice dividend. But here is my dividend play...PCU...look at the 5 year chart compared to RAI. Not even close. Plus, just today, they announced a 3-1 split. Which might attract new investors with the lower share price. Plus it pays a 6.5% dividend.

http://finance.yahoo.com/q/bc?s=PCU&t=5y&l=on&z=m&q=l&c=rai

[Masshog]

I was thinking over the last year verses the S&P..... the market climate is different now than it was over most of the period.  Over the last year RAI is a big under performer. 

[san1981]

Gotcha, well I believe PCU is worth looking into. I was going to buy some shares off the news of the split, but it was up 3.43% today in a horrible market, which is outstanding. So, I am just going to wait for a pullback to buyback in. And here is a one year chart of PCU versus the S&P. Not to bad considering the market. You can't put 100% of your portfolio in energy, so this seems to be a nice place to allocate some of it, plus you get a 6.5% dividend

http://finance.yahoo.com/q/bc?t=1y&s=PCU&l=on&z=m&q=l&c=&c=%5EGSPC

[Masshog]

Decent chart, much stronger than the S&P and a nice dividend.  My only initial concern (and I haven't studied the company at all) would be that its a copper/Natural resource play in a market sector that has been out preforming for a long while.  If you believe that the commodities and energy rallies (copper in particular) have legs left in them, its likely a good play.  Of course, there isn't much other than staying out of trouble for awhile longer that is on my radar screen right now. 

[Talon]

Looks like a pretty good buy to me. They also have a good dividend right now at 4.3%. One thing to watch for in the near future.... they could get dinged with the airline industry in such turmoil.

Certainly most airlines are bleeding but that is not necessarily bad for GE.  The airlines would benefit greatly from solutions that reduce their fuel bills.  New, more fuel efficient engines can be part of that solution.