General Electric Company (NYSE:GE)

CAPS Rating: 4 out of 5

The definition of a conglomerate, GE offers everything from light bulbs to power plants, jet engines to water processing, financial services to 30 Rock.

Recs

6
Player Avatar DAG1996MF (< 20) Submitted: 1/24/2013 3:31:40 AM : Outperform Start Price: $18.11 GE Score: +1.94

It's official -- GE is back and better than ever, largely due to lessons learned from its painful struggle through the 2008 financial crisis. Even though GE Capital is still a large (and very lucrative) part of the business, the parent company has been successfully shifting resources back towards its traditional industrial expertise with strong footholds in healthcare, aviation, energy, etc. For example, with its relatively new and already very successful oil and gas services business, GE is very well positioned to be a huge benefactor of the U.S. transition to energy independence. That's not to mention significant progress in the international O&G industry, like the recent $500 million contract with Brazil's Petrobras.

Even though I'm a long-term investor who rarely sells established positions, I'm also one of the lucky few who sold out of GE at a profit before the wheels came off of the economy in 2008. I started buying back shares a couple years later at half of what I had sold them for. Despite that, GE has regained status as one of my core holdings over the past few years and I don't plan to ever sell again. I might consider it if I think we're headed for a 2008 repeat, but I'm confident GE would weather such an event much better from lessons learned and I believe 2008 was a once-in-a-lifetime event anyway.

By the way, for those who might notice my CAPS score and understandably wonder why anyone would listen to someone with such an abysmal performance record, here's the explanation. Because I liked the performance tracking on the CAPS page, which isn't available on the regular MF watch list page, I randomly added tickers to my CAPS list to use it as my watch list long before I figured out what CAPS was for and how it works. That dug my score into a deep hole that has proven insurmountable, even though my score has been improving ever since I started using CAPS the right way (about 5 months ago). What really matters is that my real-money portfolio, which consists of 30 individual dividend stocks (except 3 dividendless biotechs), returned 34% in 2012, despite two losers out of the 30 (INTC & MSFT).

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Member Avatar NoblyNaive (82.67) Submitted: 2/22/2013 6:21:02 PM
Recs: 0

"What really matters is that my real-money portfolio, which consists of 30 individual dividend stocks (except 3 dividendless biotechs), returned 34% in 2012, despite two losers out of the 30 (INTC & MSFT)." ---> Care to share what the other 28 were? How many are included in your 55 (at time of this reply) CAPS picks?

Member Avatar gembuyer (< 20) Submitted: 4/9/2013 7:11:08 PM
Recs: 0

GE's earnings have returned to pre crash levels, yet their dividend and stock price are roughly half. Imelt alluded to increasing dividend and using $100 bil in increased divided which should lead to capital gains as well as increased dividend while increasing PE ratios due to increased payout. I think we could see a double in the stock price in the next 24 months..

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