 | Genral Electric Proxyby Green Writer on May 27th, 2008 at 1:20 pm |
(4 votes, average: 5 out of 5)
Loading ...It used to be said [[GE]] was a proxy for our economy and even for the world economies…
Since all the bad news is out and the markets are looking forward to oil selling off, the bottom of the housing market, strength in the greenback, retail and and housing stocks bottoming, no inflation, global growth, and oh yeah the banks have bottomed too…you tell me why GE just hit a 52 week low?
Buy stocks with reckless abandon. Cover all your shorts.
GLT
by Green Writer
1) Missing 1Q after having reiterated just 3 week earlier hardly inspires confidence in Immelt.
2) Immelt wants to sell the appliance division at what could be the bottom of the market.
3) It’s impossible to analyze all the finance stuff they do. After the 1Q shocker, people are afraid of more ticking time bombs.
4) That people don’t want to take GE equity risk at 12.5x earnings and a 4% dividend yield, even though it’s a AAA rated credit risk and 5 year treasurys only pay 3.2% makes no sense. It speaks volumes about a lack of confidence in Immelt and how he has either mismanaged Street expectations or the company, or both.
May 27th, 2008 at 2:34 pmYou would think Immelt was a trained Welch protege…I think it speaks volumes about the economy. I think the street knew this was coming and are anticipating more to come.
May 27th, 2008 at 2:53 pmI bought GE 8% higher ago.
Now, nothing is too low or too cheap. There is NO bottom.
May 27th, 2008 at 2:59 pmZen,
May 27th, 2008 at 3:19 pmYou would have thought that was a good entry.
I agree with the hippy here (I think). One forgets that GE also precociously sold their mortgage insurance bidness about four years back, for a nice piece of coin. At the time, I remember thinking — “wtf are they doing that for? They make a mint on that “no risk” bidness.”
I have no doubt there are certain bullets they did not dodge, but getting out of this appliance bidness is a long over due undertaking. Their problem is the Superfund site they leave behind in L’ville, KY (not to mention a similar one up in Cincy.)
I am waiting for the next reasonable consolidation zone, which may not be until (gulp!) $27.00.
What’s worse is the next stop from there is about $21.00.
May 27th, 2008 at 4:11 pmI’m in at $23…Maybe a nibble at $25.
May 27th, 2008 at 5:46 pmHard to believe it will get to those prices.$21-$27….just have to wait n c…then back up the truck!
May 27th, 2008 at 8:26 pm1982 was the last time GE saw a 5% yield ($24-25)…
imprecisely yours,
nards
May 28th, 2008 at 1:02 amGE dividend is $1.24
Therefore, 5% yield @ 24.80 …
and
6% yield at $20.67,
The aboves are the “back up the truck time.” That’s why I’d say back it up at $21.
Remember how no one thought PFE would break below $20?
May 28th, 2008 at 10:52 am