Is it a good buy at these levels? The Yield seems good. Can it go lower? Can the GE Capital arm screw things up?
Is it a good buy at these levels? No. The Yield seems good. Could be cut. Can it go lower? Yes. Can the GE Capital arm screw things up? Oh yhea, this is the real problem. They have some world class businesses but the finance arm will continue to drag on performance and deteriorate the strength of its balance sheet. I wouldn’t be reaching for yield in this environment and believe that better risk/reward opportunities are out there. I’d stay away unless you can get some kind of Warren B. deal.
I like GE, even though I agree that Capital could drag for a while. Still I think its a good buy for the long term. I bought several lots at 11.50 Unless they beat expectations next quarter, I think that either the AAA rating or the dividend will have to go.
This is good material for a Level 2 question. 1. Justify a Buy recommendation in “General Electric.” 2. State the Pros and Cons of buying GE (a) short-term (b) long-term 3. Explain if GE stock is suitable for risk-averse or risk-loving investors or speculators. 4. Would it be a good idea to buy GE Capital if it were a “listed” subsidiary of GE.
GE is a “well” diversifed company, however, when you look closely to all its business lines, they are diversifed in the general overall economy condition of the world. Currently, I wouldn’t invest into a company that is highly correlated with general economic condition. Agree with JustPass!!
Still, modernizing our energy generation, transfer, and consumption systems is one of the drivers of the next economic growth spurt.
sell on the bounce
If you have some money to invest in but afraid of further decline of the shares, go for covered call…that’s what I’ll probably do when my bonus is on my bank account I doubt that GE will go bankrupt This is my personal opinion of course…
Pauluss Wrote: ------------------------------------------------------- > If you have some money to invest in but afraid of > further decline of the shares, go for covered > call…that’s what I’ll probably do when my bonus > is on my bank account > > I doubt that GE will go bankrupt > > This is my personal opinion of course… Good strategy, collect some income as there is a lack of a near term catalyst for P/E expansion.
Stay away until CNBC fires Dennis Kneale.
Agree with the covered call. I sold some $19 calls near the first of the year for expiration this week. I can’t say I’m too worried about those getting exercised.