GE was at like $6.50 per share last week (1 Viewer)

[Gideon]

I don't really play around in the stock market but this really has me tempted.

I know a lot about GE and it's busiensses and can't beleive that they have eroded so badly. This is really insane.

I know about GE Cap and it's financing and investment arms but this company actually makes stuff! Also, I know about the proposed cuts to military spending, but still, the price seems so ridiculously low.

Am I crazy or should I create a little portfolio right about now?

All of this is with politics aside... Keep it straight and narrow...

 

[jazzeum]

I wouldn't. They're talking about doing a Chapter 11, a pre-packaged bankruptcy.

 

[vandilay]

I don't really play around in the stock market but this really has me tempted.

I know a lot about GE and it's busiensses and can't beleive that they have eroded so badly. This is really insane.

I know about GE Cap and it's financing and investment arms but this company actually makes stuff! Also, I know about the proposed cuts to military spending, but still, the price seems so ridiculously low.

Am I crazy or should I create a little portfolio right about now?

All of this is with politics aside... Keep it straight and narrow...

I would have to agree that General Electric looks like a reasonable punt medium term ,At this point it looks like any company with any exposure to lending is getting a pounding as people have lost trust [for good reason it seems].
But as you say they look like a very diversified and well run company,
I think its just the general fear factor coming into play right now.

 

[Gideon]

I was looking for news but didn't see that!

 

[vandilay]

I think Brad might be refering to GM not GE

 

[Gideon]

I was reading up on GE's newly signed contracts and projects around the world but didn't see anything about bankruptcy.

I wouldn't touch GM with my worst enemies bank account.

Funny, I was reading up on the auto industry and Subaru actually seems to be doing a-ok. Love my Subaru.

 

[Gideon]

I would have to agree that General Electric looks like a reasonable punt medium term ,At this point it looks like any company with any exposure to lending is getting a pounding as people have lost trust [for good reason it seems].
But as you say they look like a very diversified and well run company,
I think its just the general fear factor coming into play right now.

That's what I was thinking. I mean, shoot, if our government isn't going to let Citi go down in total flames they surely aren't going to let it happen to a major manufacturer who happens to have a lending arm (except maybe GM).

 

[vandilay]

That's what I was thinking. I mean, shoot, if our government isn't going to let Citi go down in total flames they surely aren't going to let it happen to a major manufacturer who happens to have a lending arm (except maybe GM).

From all I have read GE are in a fairly strong position given the current
state of things and being such a diversified company you would have
to think they will be a good bet to come back strongly when things
turn around . [though my bet would be thats going to take some time
so i,d be looking at a few years for a return] but who knows ?

 

[Gideon]

From all I have read GE are in a fairly strong position given the current
state of things and being such a diversified company you would have
to think they will be a good bet to come back strongly when things
turn around . [though my bet would be thats going to take some time
so i,d be looking at a few years for a return] but who knows ?

I am turning 34 this year so I was thinking of some long term stuff. I am not at all experienced enough to play in the short term, make a buck here and there stuff. Not for me. I want some things I can grow into over time.

 

[Rutledge]

I think Brad might be refering to GM not GE

Absolutely. There is no talk of GE entering a pre-packaged bankruptcy. In fact, GE has annnounced it will still pay a dividend, albeit at a reduced level. Near bankrupt companies dont pay out any dividends.
Brad must have meant GM.

Regarding GE, I think it depends if you are looking for a "trade" or an investment. If you are going to pop in and out of it, then you COULD reap some quick profits. A dangerous game, however.

As a longer term investment, I would say it depends on your timeframe. GE has significant exposure to the troubled financial system thru GE Capital. Meanwhile the rest of their business portfolio is heavily concentrated in the industrial sector. Industrial endeavors are depedent on strong economic activity in which businesses are looking to expand and/or improve their operating efficiencies.

The market can be wrong, but its more often right. Id be very wary of buying any stock just because its way down and therefore "must be cheap".

 

[jazzeum]

Sorry, misread on my part; I meant GM.

 

[Gideon]

Absolutely. There is no talk of GE entering a pre-packaged bankruptcy. In fact, GE has annnounced it will still pay a dividend, albeit at a reduced level. Near bankrupt companies dont pay out any dividends.
Brad must have meant GM.

Regarding GE, I think it depends if you are looking for a "trade" or an investment. If you are going to pop in and out of it, then you COULD reap some quick profits. A dangerous game, however.

As a longer term investment, I would say it depends on your timeframe. GE has significant exposure to the troubled financial system thru GE Capital. Meanwhile the rest of their business portfolio is heavily concentrated in the industrial sector. Industrial endeavors are depedent on strong economic activity in which businesses are looking to expand and/or improve their operating efficiencies.

The market can be wrong, but its more often right. Id be very wary of buying any stock just because its way down and therefore "must be cheap".

I understand this. With the stimulus money coming into its own, the various infrastructure projects announced, the need for equipment and GE's push into "green technologies" I was thinking there could be some good short term gain and/or good gains over the next 5-10 years.

I was figuring with the price is was at last week, it could'nt hurt to maybe 100-200 shares and just sit on it.

 

[vandilay]

Absolutely. There is no talk of GE entering a pre-packaged bankruptcy. In fact, GE has annnounced it will still pay a dividend, albeit at a reduced level. Near bankrupt companies dont pay out any dividends.
Brad must have meant GM.

Regarding GE, I think it depends if you are looking for a "trade" or an investment. If you are going to pop in and out of it, then you COULD reap some quick profits. A dangerous game, however.

As a longer term investment, I would say it depends on your timeframe. GE has significant exposure to the troubled financial system thru GE Capital. Meanwhile the rest of their business portfolio is heavily concentrated in the industrial sector. Industrial endeavors are depedent on strong economic activity in which businesses are looking to expand and/or improve their operating efficiencies.

The market can be wrong, but its more often right. Id be very wary of buying any stock just because its way down and therefore "must be cheap".

I think that is very good advice , If I was looking at buying i,d be looking
at a 4 or 5 year time frame not at trading.
For all the doom and gloom though I think thier may well be some good
opportunities in the coming months to get hold of some shares in good
companys that have been sold down with the bad , short to medium term
things aint looking to flash so fear will hold sway.

 

[Rutledge]

No doubt, GE is tempting at current levels. Course, I remember thinking the same thing when it was $15. Its down 60% from there

Need I remind: people thought the same thing about Citi (C) when it was on the way down. (now at $1)

The best argument for it is that GE is an american stalwart, a global leader in many industries, and so surely it will survive, if anyone does, and ultimately thrive. Its a reasonable perspective.

The main arguments against are that you arent really getting paid to wait (via dividends), there is no telling what risks are hidden in GE Capital, and it would certainly suffer from a long period of sluggish economic activity.

Regardless, buying a few hundred shares at these prices is certainly not much of a risk, assuming your portfolio is at least in the medium to high 5 digits That said, I woudnt put any money into it you arent prepared to lose 100%. And finally, consider the opportunity cost. Another investment (GE bonds???) might provide better returns over the next 3 to 5 years. I dont think there is any huge rush before it goes sky-rocketing back up.

 

[gk5717]

Gideon, I stopped buying mutual funds around 2000, right before the first stock down slide. But just prior to that I bought $1000 of GE stock at around $41 a share, with the first down ward slide it went to $22 and then as with all stocks it rose to about $38.
As it was rising I kept telling myself if it ever hits $22 again buy.
Well it did and I didn,t, but every day especially at around $8 a share I have my thoughts that I should gobble it up. I,m 62 and retired, but if I was 34 for the long term I would buy.
I have heard no word on GE and bankrupcy, in fact the CEO was just on the news commenting on it,s Banking arm and stated that they have plenty of other assets to cover any losses.
It may take a while to hit $41 a share but I would bet anything 5 years from now at $8 a share you will have made some change.
They also have a way you can buy shares directly from them and pay no brokerage cost, that,s what I did.
Gary

 

[Njja]

Gideon:

I have held a position in GE for quite a number of years, they have just cut dividen to $.10 per quarter...a disgrace, current CEO is poor to say the least.
While you might see a slight upside I would not advise you to jump in.

Market is very volatile at the moment, and investors need to exercise caution, with that said there are real fortunes to be made by some.

Here is one example Morgan Stanley MS hit $13.10 on Jan 20 then $23 a week later. More recently it hit $16.48 March 9 and closed at $22.51 today.

There are many excellent companies caught up in the current uncertainty, that will offer excellent opportunities in the future.

Remember only invest money you do not need immediately for toy soldiers.

Gideon, give me a call if you like and I will point you to a few stocks you might consider!

J.

 

[Gideon]

Thanks JA! I will take you up on that when I can enough together to enter in.

This economy is slamming me and my business right now. It is depressing but I am in good company and beer is cheap in Philly.

That said, I don't want to miss on something if I can do it.

If GE goes back down to $5-$6, I'll feel comfortable enough to get a chunk.

Was also thinking about PG.

 

[Njja]

Gideon:

I also have a small position in PG, good solid company, stock is expensive
(compaired to many at moment) earnings are good, cash position is good, debt is a bit high nearly 50% of earnings.

You might look at MO, HD, LOW, DD, to name a few to consider. Remember I'm usually up in Den when market is open.....unless wife has me out for a
cruise.