Is GE cheap or what?
June 30th, 2008 by Grant in: InvestingOK, so there are a few of you out there that are going to read the title of this post and say something like “…yes, but ‘cheap’ is a relative term…” and you’d be absolutely right.
A long time ago I was doing some research on what I consider some fairly sleepy stocks. You know, the Proctor and Gambles, the Johnson and Johnsons, General Electric, etc.
I set up some reminders to send me an email if a stock ever dropped to a certain level. Well, at the time, I figured yeah, if GE ever drops below $27.50 I’ll buy some.
Well, it just so happens that I got an email the other day, that criteria was met.
To be honest, I haven’t followed the company much for the last six months, but I’m wondering if GE is a bargain right now or not…
Any thoughts?
Tags: GE | JNJ | PG
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June 30th, 2008 at 8:59 pm
Bought GE @ $27.06. Intend to increase that position as long as it’s below $27
June 30th, 2008 at 11:14 pm
GE is one of those companies I always have liked and wanted at a value like it is right now, but to me its problem is its greatest strength. GE is an extremely diversified company, consequently it is hard to sort out how the company is doing. It has TV interest which are okay, movie interest which are doing great, a appliance group that is doing so bad that they are selling it, invested into financial sector which isn’t doing so hot, make trains that seem like they should be doing okay, a decent electronic controls and raw electronic parts division, and have more different and profitable types of energy generation than you could shake a stick at.
What do you say is the overall trend of the company though? I personally think that they have too much invested in the finance sector, but beyond that I like everything that the company is doing and making. I am not a big Carl Icahn fan, but I do think GE is one of those companies that should split their units into different stocks so that people can actually see each sectors performance more clearly and then push some money into the stock. On the other hand that is exactly what makes GE a fairly safe bet.
Compare the stock to the overall performance of the Dow, S&P, and NASDAQ over the last three years and I think you get a clearer picture. The stock typically seems to mimic all three indicies but recently has really dropped which could indicate value. But, it has consistantly not performed as well as the indicies which may mean to really not get into the stock.
I say wait until the economy starts to turn or at least three major indicies begin trending upward and then start buying. That would seem to mean a turn around in stock price is coming.
July 1st, 2008 at 6:45 pm
Scale in if anything. There is going to be a shift away from the perception that American equities go up over time. Constant spending with little growth is recipe for disaster. I struggle to think of what will be another catalyst for American growth, but the only thing I can think of is our agriculture. Our infrastructure (both physical and intellectual) is sophisticated and sound, but my generation (25-35) have our work cut out…