GE stock questions.

[noob_trad3r]

I bought a whole bunch of GE at 6.88 (7500 shares) and still holding but I am at a dilemma. I notice that the analyst have a 12 month price target for 13 dollars, Why would GE be trading at 14.53. I am thinking of writing covered calls for GE with a strike of 15 for june so I can collect 68 cents a share (5100 dollars) for monday.

I bought 7.50 puts for GE that expire september 2009 for 17 cents as insurance.


GE seems to be moving fast up but the analysts give GE a 13 dollar 12 month target. How do they figure out this price target and can a stock go much higher than the target?

 

[midniteeuropa]

hold it, this is going up.

 

[rickf]

This may or may not be helpful, but my short answer: forget the analysts "calls" and "price targets" or "analysis" -- do what YOU think is best for you based on your assessment of GE and the market.

I have been long of GE from the mid-30s and since Dec or so, have become much longer by DCA'ing to tht existing shares position and then 'punting' by selling a bunch of long-term puts at various strikes. If I get assigned, great, I get more GE at various prices under $10. If not, I've got my existing shares at a lower cost, and have pocketed the inflated premiums collected by selling the puts when I did. Owning GE at these prices for the long-term is a lifetime opportunity I feel.[1]

For an investor who views GE as a fantastic position with a long-term timeframe, GE at these prices is a steal. So all those folks who dumped it in the teens based on CNBC 'calls' and/or those who dumped it because of short-term volatility, I thank them for allowing me to add to my long-term position.

Bottom line: Screw the analysts.

[1] Not "buy-and-hold" or "fire-and-forget" but rather "invest-and-manage"

 

[midniteeuropa]

why were you accumulating since the mid 30's when the company high was around 37 ? It would make more sense if it was once a 100-150 dollar stock.

Quote from rickf:


I have been long of GE from the mid-30s and since Dec or so,.[1]

[/B]

 

[rickf]

Quote from midniteeuropa:

why were you accumulating since the mid 30's when the company high was around 37 ? It would make more sense if it was once a 100-150 dollar stock.

I started buying it a few years ago before the markets tanked...

 

[noob_trad3r]

What is odd is BAC is at a P/E of 17
JPM 68??
WFC 38
AXP 15 (credit card)
Siemens 21

Tyco,Phillips both posted losses
CBS posted loss
TWX posted losses

So its peers in these industries are either trading at big P/Es or posting losses.

GE is only worth a P/E of 8.98

Thats another thing I find odd.

What is the current P/E of S&P500

 

[noob_trad3r]

GE is going down I wonder if another opportunity to buy at 6's is coming again soon.

 

[noob_trad3r]

Looks like my GEWEM may strike 13 calls will expire worthless hopefully. I never got assigned though even though there was not much time value, not sure why.



I sold 75 contracts for 1.26 to GE is still under 13.

The commision was 66.24 (etrade)

hopefully GE stays under 13 tonight and I pocket the 9383.76 dollars

I think I will wait a while before writing the June covered calls.

I picked the strike 13 because that seemed what the consensus was for the GE.