I mentioned back in July that I started picking up shares of General Electric (GE: web, chart, Y!) after they reported that they sold off mortgage and credit card assets.

Well, since then the stock has dropped more than 60%, which doesn’t boost the portfolio at all, but it does fit right in with every other stock I own.

Today the stock dropped below $10 per share, its lowest levels since 1995.

Unfortunately, even after selling off a significant portion of their mortgage and credit assets, they company is still left with significant open exposure to the financial sector through GE Capital.

Along the same reasoning behind picking up some shares of Ford, I’m wondering if I should average down on GE.  At $10 per share, it wouldn’t take much to bring down my average significantly.

The one big unknown is the leadership in Jeffery Immelt.  I applaud him for denying a raise and a bonus, although I wonder if it’s only because he knew he’d get crucified by shareholders if he took so much as a penny for a raise.

Corner Office Comments

At this point in time I think it’s wise to average down.  GE is one of those conglomerates that, while beaten down in todays market environment, still has good long-term prospects.

I see the company as having lost direction due to distractions from their financial segment.  Unfortunatley I think it’s too late to turn the ship around in time to really beat the bottom, so it may just be wise to ride out the waves until things start looking up.

I will pick up cheap shares below $10 to get my average cost down, and I think I’ll have plenty of opportunity to do so.  The Street’s lack of confidence in our government policy is going to take some time to rebuild, and the more Obama tries to help, the longer that process will take.

Investing GE, General Electric, Jeffery Immelt