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dpdoor (< 20)

Will GE save the world?



October 02, 2009 – Comments (6) | RELATED TICKERS: GE

What would it take for the market to rally again? A pull back to get away from that ominous 10k mark and then a blast from one of the most widely held stock in the United States might work. GE reports the week of October 16 2009, this could be the most significant report of GE’s history. A great report might ease fears and could significantly help keep the recovery heading in the right direction. I am betting that GE will have a report that gives us hope, and when I say betting I mean that literally and with cash.

6 Comments – Post Your Own

#1) On October 02, 2009 at 5:42 PM, davejh23 (< 20) wrote:

GE is a great company, but a difficult one to value right now.  A huge portion of their earnings had been coming from their financial arm, and now they're looking to shed NBC...this could be a big plus...but possibly a sign of weak earnings in other parts of the company (they need the cash).  Based on current and future earnings estimates, it looks like GE is a bit overvalued right now. 

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#2) On October 02, 2009 at 9:40 PM, russiangambit (28.92) wrote:

Is there any paticular reason to believe that GE will have great earnings this quarter? I met some people who work at GE, it gives an impression of a huge inflexible bearaucracy. This omcpnay is too big to succeed.

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#3) On October 02, 2009 at 9:59 PM, starbucks4ever (86.96) wrote:

Based on cash flows, there is much to like about GE, in my opinion. It was priced in March like it was going out of business, but even today it's priced as if its financial division will never earn a penny. I side with Buffett in thinking that in a couple of years it should cost $25 or more.  

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#4) On October 02, 2009 at 10:26 PM, topsecret09 (83.85) wrote:

      They are probably lowballing GE's forcast,but they are expected to earn 20 cents In the quarter coming up,which would be a 56% decline from last years quarter. For the YEAR the consensus estimate Is 97 cents. NEXT YEAR the estimate Is actually LOWER at 89 cents... This stock Is fully valued at 16 or 17 dollars per share. If you apply a forward PE to next years estimate with the stock at 17 your PE RATIO is a little over 19...  TS

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#5) On October 02, 2009 at 10:30 PM, topsecret09 (83.85) wrote:

#3) On October 02, 2009 at 9:59 PM, zloj (98.67) wrote:in a couple of years it should cost $25 or more...   Very possible longer term.... TS

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#6) On October 02, 2009 at 11:27 PM, ChrisGraley (28.69) wrote:

I'm more in agreement of post #1 and post #2. GE has succeeded in the past with innovation and shrewed buyouts of other companies. The only cataylist that they seem to be counting on in the future is a big bet on solar. Solar already has too much competition and is to the point of being commoditized. I also think that the sale of NBC Universal is a sign of desperation. If you look at the deal though, it's not a play for cash as much as unloading debt. NBC is very overleveraged.

I'll wait for a bigger sell-off before I buy GE.

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