My husband and I are looking to buy GE. Is it a good buy? Or should we wait to see if it continues to drop?
Answers
2082 points
alanj answered 5 months ago …
Beginning in Sept 2000 GE began it's downward slide. This was in the midst of a bull market. This would indicated a company that is having big problems. That would be a high of $60.50 to it's current price of $11.72. However, it did follow the market up in it's recent bear market rally beginning in March and may have ended around June 11.
Secondly, the DOW and the S&P 500 are both over bought. And some important indicators have signaled a bear alert. Meaning the market has now turned down with a good chance of continuing down. The DOW and S&P should test the March lows.
I'd wait on GE or any other major stock as far as that goes, until the market has bottomed and starts back up again.
426 points
MONEYTREE answered 5 months ago …
Depends on your time frame you are looking for and how much you want to buy. Alanj is right that the market is pulling back most likely. I do want to disagree with him on the testing the lows of March, this market will not i repeat will not go near 6500 on the DOW, that was when everybody thought things were over, the economy was horrible and the financial meltdown scared everybody, thats over... and that would be to easy to be expecting the DOW to go back to that level, market is never that easy.. GE is probably not going to go back to single digits, this stock hit its lows of 5 something , in the worst time, and aslo cut dividend,lost triple A rating... its was way over sold at that time. This is a great stock to buy for the future i believe, when they do increase dividends again this stock will be bought just because of that like it is now. I would say if you could get this at around $10.00 buy it , but dont buy all at the same price if you are buying and holding for a longer term just in case it does go down farther... as the economy recovers so should this stock..Be patient with this one..wait for a pullback ....
Read more from MONEYTREE
731 points
thinker70 answered 5 months ago …
Remember other companies that were "too big too fail" GM comes to mind. Just because a company has a great long term history does not mean that it is a great buy under different economic circumstances or management! The past is not necessarily a safe guide to the future. By the same metrics a year ago GM might have seemed like a great buy at prices that dropped precipitously
That being said GE is in some great sectors with potential, the question is whether a conglomerate can be effectively managed to produce good results in TOTAL! Personally I do not think GE has necessarily bottomed because I disagree with MONEYTREE that the DOW will not see 6500 again, on the contrary it could go much lower than that if the FED keeps printing more and more money to keep bailing out firms that should be allowed to die and more efficient management take over the assets to allocate the capital more efficiently
The marketplace is far more EFFICIENT in allocating capital than government and i doubt that we have seen the bottom yet, there COULD be much worse to come as commercial real estate and credit card defaults send the market into another tail spin, we are not out of the woods yet by a long shot. If you are willing to hold GE long enough it MIGHT be a profitable buy, but it could also be "dead money" for 6-12 months, or worse, even fall further before reaching major rebound territory.
426 points
MONEYTREE answered 2 months ago …
Looking back at this stock and my advice i gave at the time i hope you bought this stock at 10.00 it never did break 10.00, If you did buy then you would be up over 50%... Good luck you guys..The market aslo never went down..
Read more from MONEYTREE
3963 points
MNSL answered 2 months ago …
This stock is a long-term play. Buy on market weakness.
Never give up buying stocks if you have knowledge. You should be in the market all the time if you want to beat the market.
I think we should not only buy some stocks we also should hold and should sell overpriced stocks now. This is the time to rotate your stocks, markets, currencies, commodities and countries.
As I said in my earlier answers, we will see volatility in almost all types of market during next 10 years due to so many factors. .
Many couldn’t identify current rally in the global market. I was talking about stimulus packages, global cash positions and lower oil price in all in my previous answers. These factors and some other factors would help markets to rebound strongly. Further, I said not to limit to particular region and to spread in emerging and frontier markets as well.
I also said market would go up at any moment and not to short the market during last five months.
I think there will be market correction during next six months in many global markets. Some markets began their rally before other global markets and they have overstretched now. Still there will be some room to appreciate in some emerging markets. Thereafter we will see market correction. Then you will have opportunity to buy more and more GE.
Some markets will go side way and some markets will have minor correction during next six months.
Remember some small and medium sized companies in some global markets have formed their long-term growth base and they will outperform market during next five years. Even some defensive companies will become growth companies in country such as China and Indonesia surprise to many.
This is the time to rotate your stocks, currencies and markets and pay attention to undervalued companies with great potential in the future. Some global hidden companies will have above average growth during next five years. Intelligent investors, intelligent contrarian investors will buy more and more undervalued hidden companies now.
