General Electric Company (GE)

ratrop1 (< 20) Submitted: 10/08/07 7:58 PM : Start Price: $40.79 GE Score: 12.53

Yes, GE's a great company with a nice safe dividend. But Jack Welch squeezed most of the juice from GE over three decades, which has left it struggling for growth for five years now. Price fell from just over 60 to low/mid twenties after 9/11, at which time it was a great buy. Even last spring it was a buy at $34. But at $42 (a five year high) and a P/E of 18.5, price risk is at least as great on the downside as upside, given that growth for the foreseeable future won't hit double digits. And the likelihood of a spinoff or restruct5uring to unlock GE's considerable value seems as remote as ever. So unless you're VERY conservative or a VERY long term investor, take your profits and wait for a better entry point for GE. It'll come... In the meantime buy another blue chip trading at historical lows instead of highs (Comcast springs to mind...)

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