Dog of the Dow - GE
- Thread starter AndersenBands
- Start date
There is precedence for playing "dogs of the Dow".
Companies have problems, stock price reflects it.
Company does what it can to rectify problems and does better. Stock price reflects that too. l recall years ago advising neighbors on GE as part of their 401k. It was trading ~$6, and I told them, "load up". Rallied to $31. If they'd have asked, I'd have told them to sell ~$30, based upon the chart.
Knowing them, it's likely they've held down to $14... still, that's not the worst outcome.
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When they started to crash, I thought, "Buy any GE below $18" just on reputation alone.
But when things got more involved, I looked a little at their fundamentals, and was not happy -- I remember a p/e that I thought was way too high for a company so large but NOT on any bleeding edge. A price of $10 vaguely stuck in my mind.
Now that they're camped at $14? I just looked at some fundamentals, and they suck. What's the current forward p/e?
They've got great breadth, and with a *historic* brand.
They HAVE BEEN bleeding edge.
So the question is, are they going to AAPL ($13-->$2000?), or are they going to SHLD?
*I* think they could fairly AAPLize themselves. They could attract the talent, and there is a *crap-ton-load* of soon-to-be-marketable technology that would be right up their wheelhouse.
I'd rather $10. But $14??
I wouldn't say "no." I'd say, "I need more info" and I'd go about it.
(FWIW and all that...
)
But when things got more involved, I looked a little at their fundamentals, and was not happy -- I remember a p/e that I thought was way too high for a company so large but NOT on any bleeding edge. A price of $10 vaguely stuck in my mind.
Now that they're camped at $14? I just looked at some fundamentals, and they suck. What's the current forward p/e?
They've got great breadth, and with a *historic* brand.
They HAVE BEEN bleeding edge.
So the question is, are they going to AAPL ($13-->$2000?), or are they going to SHLD?
*I* think they could fairly AAPLize themselves. They could attract the talent, and there is a *crap-ton-load* of soon-to-be-marketable technology that would be right up their wheelhouse.
I'd rather $10. But $14??
I wouldn't say "no." I'd say, "I need more info" and I'd go about it.
(FWIW and all that...
)Good points. Have had similar thoughts. At some point they get lean, spin off bleeding divisions and refocus on the core.When they started to crash, I thought, "Buy any GE below $18" just on reputation alone.
But when things got more involved, I looked a little at their fundamentals, and was not happy -- I remember a p/e that I thought was way too high for a company so large but NOT on any bleeding edge. A price of $10 vaguely stuck in my mind.
Now that they're camped at $14? I just looked at some fundamentals, and they suck. What's the current forward p/e?
They've got great breadth, and with a *historic* brand.
They HAVE BEEN bleeding edge.
So the question is, are they going to AAPL ($13-->$2000?), or are they going to SHLD?
*I* think they could fairly AAPLize themselves. They could attract the talent, and there is a *crap-ton-load* of soon-to-be-marketable technology that would be right up their wheelhouse.
I'd rather $10. But $14??
I wouldn't say "no." I'd say, "I need more info" and I'd go about it.
(FWIW and all that...
Bought it within pennies of the 2009 bottom when on the institutional side.
I stick to quantitative and technical models in such a way that allow the fundamentals to be baked in. Cheers!
Not ~$31? You're losing your touch!
Haha love it!
I guess no one can resist their favorite cheap stock. But who am I to say, got some 2020 LEAPS on this few weeks back lol
Perhaps that explains why dogs are considered a man's best friend
