Is it a decent valued stock ....worth the risk now
On a scale of 1-10: one being a bad risk 10 being a good risk ......How would you rate GE
Answers
511 points
songcon answered 3 weeks ago …
Yes, I agree. It's a good point to get into GE for the long term. It's not clearly positive for the short term chart, but any negative movements would not be that severe.
Yes, time to buy GE is now!
http://stockcharts.com/charts/gallery.html?ge
3963 points
MNSL answered 3 weeks ago …
It is a long-term play. Buy on market weakness.
It is better to buy in a big fire sale somewhere around February and March 2010.
If it comes down below $7, it will be very attractive.
176 points
JPL answered 3 weeks ago …
Hi, cmlakes,
I’m not disputing what Songcon and MNSL has given you, but perhaps you might be interested in a different perspective.
I have joined the “Tickerhound” only last month, and inferred from MNSL’s many comments that he’s quite knowledgeable and experienced in the market, to say the least. And Songcon is an experienced stock trader. So they know what they’re talking about.
And me ? I’m still learning.
Are you a trader or a buy and hold type ?
If you’re a trader, the value or fundamentals don’t matter too much. You can make money on GE, no problem, it’s just a matter of timing, although easier said than done.
Today GE closed at 14.96, coming down from a recent peak of $17.50. It’s in the oversold territory, and sliding along the bottom of the Bollinger band. I.e. Time to buy is coming.
If you’re a buy and hold type, then consider the following.
I don’t follow GE and so don’t know much about the stock, but I’ll share with you some info.
No doubt that you’re aware that Warren Buffet has a very large dollar investment in GE.
If by any chance that Warren’s bets was a criteria in your stock selection ,
did you also know that his risk/reward potential is much better than any retail investor can get ? For example, his GE holdings has a 10% perpetual dividend feature, which means he gets an annual 10% dividend before any other investor will get a penny. Also, as part of the GE bailout, he acquired a large position of options at no additional costs, options which he can exercise at a lower price when the stock rises.
Also, why did GE have to be bailed out in the first place ? As I understand it, GE has a lot of debt, and does not make enough money to cover the interest on the debt. Give it a few years, and GE will most likely go bankrupt.
MNSL has good insight. GE might come down to $7 next year.
Morally speaking, GE’s products and services are good for the people, so I really hope this great company will survive.
Hope the above helps.
JPL
10/27/2009
