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JimVanMeerten (62.98)

GE is loke buying an Industrial Index Fund

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June 28, 2011 – Comments (0) | RELATED TICKERS: GE

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I know you may be tired of hearing me say they are some great stocks at bargain prices but I really think there are.  Recently Steve Forbes was interviewed and made the statement: "Now is the time to buy stocks and get into the market."  I think he's right.

I used Barchart to screen for stocks with double digit earnings growth projections and came across an old and popular favorite General Electric (GE).  The stock,  just like the rest of the market has been beaten down lately but when investors decide the market has bottomed this is a stock that should soar like an eagle.

Barchart technical indicators:

Barcharts indicators are short term technical price momentum indicators. The stock is presently still going down

96% Barchart technical sell signal

Trend Spotter sell signal

Below its 20, 50 and 100 day moving averages

6 new lows and down 5.16% in the last month

15.75% off its 6 month high

Relative Strength Index is 34.66% and still falling

Trades around 18.10 which is below its 50 day moving average of 19.29

Summary: General Electric (GE) is so big and diversified that its almost like buying an industrial index fund.  Short term sales projections almost mirror the GDP index projections but earnings growth projects imply analysts consider the company the cream of the crop.  With the 2.80% dividend and earning estimates the total return on this stock could be between 20% - 22% annually for the next 5 years.  I think if you have it don't sell, if you'd like to buy place a buy stop at the trailing 20 day moving average and hope to buy a bargain.

Jim Van Meerten is a Marketocracy Master

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