+ Watch GE
on My Watchlist
The definition of a conglomerate, GE offers everything from light bulbs to power plants, jet engines to water processing, financial services to 30 Rock.
A common sense pick (and my first). This was also the first stock I ever bought. Simply, GE is well-rounded and supports a plethora of products. I expect it to mirror or outperform the market.
Wall Street wants you to believe GE is safe and good investment but you would be safer and better off in an S&P 500 index. It is interesting that GE gets a 4-star rating but that simply means that a lot of people beleive the stock will do well. I think that is because Wall Street and the news media constantly report that GE is safe and a good investment.But if you look at the CAPS database you can see that most people giving GE a thumbs up are in the red. This got my curiosity going so I did some data mining. In fact, only 26% of members giving a thumbs up to GE have a positive score. And 71% of those made their thumbs up call in 2009 when GE traded for less than $16, a lot less in most cases.I think GE will mirror or underperform the market for many years to come. Nobody who bought before 2009 is positive and the 2009 buying opportunity has passed.Of course investing isn't about past performance, it is about what will happen next. So why should a conglomerate with 10% growth sell at a P/E of 16? I believe GE has lost its justification for being a premium priced stock. No amount of Wall Street advertising will bring it back.Rein
Rein;GE is not a very good company, yes, but you have to acknowledge that our government (and media) is going to do everything in their power to prop the company up. Therefore, as a speculative bet, it might be a good company to make a lot of money. The company, itself, is of course junk. A bloated corporate culture that spends a lot of time doing management workshops and other nonsense and almost zero time actually working on their core products - reactors, jet engines etc... it was founded by Eddison in the early 1900's but has obviously strayed miles from any of his core values. Also, I heard they built the reactor at Fukishima... haha and didn't even say sorry of course. Anyways, yes GE is junk, but that doesn't mean that you can't make some money on the swings. For God's sake, Obama didn't make them pay any taxes... doesn't that tell you something?
I gave GE thumbs down on 5/15 and I'm 6 on my GE pick. A lot of people argue that GE is a great company because they pay NO TAXES. Personally, I find that exact thing a compelling reason why GE is absolutely NOT a good investment. How can GE not pay any taxes and still only have a dividend yield of roughly 3%. Both Verizon and ATT pay taxes and they both have a higher dividend yield than GE. I find that to be very telling. Imagine what will happen to GE if all this debt-ceiling and spending-cutting activity in congress results in GE having to start paying taxes. There goes your dividend, there goes your profits. GE, if they have to pay taxes, becomes basically a break-even company.
These arguments would be more compelling if GE were not obliterating steadily rising earnings estimates in spite of their weak GE Capital earnings.The Fukishima argument doesn't hold because GE told the Tokyo power company they needed to bring their shielding up to snuff and the plant owners did not.Edison's core values, sad to say for an American icon, was hostile business practices including manipulation and downright thievery (look no further than the light bulb and all interaction with Nikola Tesla). Straying from his values, if they can be considered such, is from an ethical standpoint a good thing.GE was a $21 stock before the summer downturn. It will push that again by the end of the year in addition to another dividend increase. Bet against them if you like, but I wouldn't risk putting any real money into that wager.
GE is sitting on 91 billion cash on hand and as of today has a market cap of just 152 billion...http://www.fool.com/investing/general/2011/09/30/ge-is-regaining-ground.aspx?source=itxsitmot0000001&lidx=8They have consistently beat their earnings estimates, rumors abound of another increase to the dividend.Current yield of 4.2%, P/E of 11.9......This stock has no where to go but up.
Interesting pitch and commentary on supporting GE. What about the non tangible assets & the debt on the balance sheet? Anyways, we can speculate on the ups and downs of GE stock, but it may better serve you to pay attention on your impact on the up and down of your local community (and indirectly your livelihood - allowing you to play with said GE stock)YOU are enabling future economic hardships by holding even miniscule deposit money at the largest banks - they love OtherPeoplesMoney!STOP IT NOW!A bank can only be in business and be solvent as long as there are depositors money to support their assets. YOU, your friends, family, coworkers are providing a LIFELINE to these banks with your $50 here, and $50 there in bank accounts.SOLVE this now by moving the funds into a community bank or credit union (and support the economy of your area instead of supporting these fraudsters playing with OtherPeoplesMoney in asia, europe, wall street, & Wash DC economies). This also effectively changes voting representation in the regional central bank offices. You should have $0 in deposits at Wells Fargo, JP Morgan Chase, BofA, Citi, Barclays, and HSBC! Don't be ignorant, learn that most community banks & credit union networks provide the same conveniences as the above mentioned entities.Doing the above is simply more powerful than most people's votes.As for the political process, well...Bush = Obama = Romney = Pelosi = Gingrichthey all want bigger governmentthey all support central banking monopolythey all push for keynesian policiesthey all ensure mega corporate power with larger govt.they all push for higher tax on middleclass (whether actual taxes or inflation tax)they all support UN & warsthey all support the enabling of white collar crimes/loopholes (without real, pervasive penalties)the policies set forth by these 'officials'/govt ppl are making the poor become poorer and destroying the middle class.1) the solution is to recognize the corrupt two party system (and how the democrats and republicans have worked cohesively together in killing REAL debates in this country in over the past couple of decades)2) after recognition of 1), you should identify the few in either party that has actually voted what they preach, & what they preach goes against the mainstream congress3) support the few real representers of the american people in either side, and become involved yourself in the political races4) educate others, talk to friends family, and engage strangers in public with identifying ppl who are wronging us (and also righting us)5) understand we may not need more legislation today (and in the future), but instead, may need to massively undo most legislation of the past few decades to get to a better place
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