I've been seeing a lot of GE commercials lately, do you think it's a good buy?
around the low 30s high 20s?
Best Answer
312 points
MoresbyChief answered one year ago …
I'm always tempted to move into a bigname stock like this when it gets hit. If you're a risk averse and long term investor then you could do much worse - it pays a steady yield and apart from its financial exposure is a steady, conservative play on global infrastructure.
However I agree with the above responses that if you're considering entering a new position I would hesitate to buy now. Very short term you might see a small rise in the price as traders may feel the sell off was over done. But you're likely to see the stock move lower over the next weeks. If you look at the chart, the stock has now gone below previous support levels at around $33 - this has been a support level since mid 2004. I'm definitely not a technical trader but many would say that this suggests GE will move lower before finding support again.
Answers
412 points
MajorPayne answered one year ago …
I'd stay away from this one for now -- GE is well diversified but the recent downturn in its financial services division has finally impacted the entire company's results. Furthermore, if this credit crunch gets worse and the economy falls into a recession, GE is going to have to lay people off. When that happens, this stock will get hit.
If you're already in it, I probably wouldn't sell, but I definitely wouldn't be buying more just yet.
307 points
ShoeMan answered one year ago …
They didn't do as well as expected with earnings. I agree with MajorPayne to hold off on buying.
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4085 points
EthanR answered one year ago …
After the big sell off in GE the other day, today it was up just a few cents for a good part of the day, then sold off to close about 1% below its previous close. Technically, the chart looks dismal, but it is nearing oversold levels. You didn't say what your time horizon is, but if it's long term (years), I would say to go ahead and buy part of your position around $30, which could be within a week or so. But hold off on the remainder of your position until you see where GE is going. Very often when stocks gap down the way GE did on Friday, there is a temptation to buy them, but more often than not after a small dead cat bounce, they fall to even lower levels. So be patient with this one.
But I do agree that buying great stocks when they are chopped down has always been a way to make money in the long term. Take a look at some long term charts of stocks like MO and DIS and SLB, and you will see exactly what I mean. DIS was 18.00 in 2003, now it's 30.00. MO was 35 in 2003, before it split it was 79. SLB was at 20 in 2003, now it's at 91!
So be patient, and then buy GE with long term confidence.
307 points
ShoeMan answered one year ago …
check out this article: http://seekingalpha.com/article/72123-ge-s-earnings-miss-what-ever-happened-to-warning-investors-first?source=yahoo
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