General Electric Corp. (GE) - Is GE Okay?

Quote from southamerica:

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October 20, 2008

SouthAmerica: Reply to Nazzdack

There is a big difference between Harold Geneen’s IT&T and Jack Welch’s GE.

The stock analysts were better able to evaluate GE stock in the last 25 years, and the people who invested in that stock did very well over the years.

In the case of Geneen’s IT&T the stock analysts in Wall Street had a hard time figuring out the real worth of that company and the stock of IT&T under performed and never reached its full potential based in the amount of companies that they had under management in the 1960’s and early 1970’s.

I had a friend who used to work for IT&T when Harold Geneen was running that company, and sometimes he would receive a telephone call from Geneen at 2 AM in the middle of the night asking a question about regular business. The people who worked for Geneen had to be ready to answer questions at any time since they could receive a call from him 24/7 – and he was a real workaholic.

Harold Geneen became a legend during the years that he did run IT&T.

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Shall Harold Geneen’s IT&T ever catch the same situtation as JJack Welch’s GE? lol
 
To southamerica,

thank you for replying to my post to you. many kids my age and even younger know more about computers than i do due to i am special needs which means i am not stupid but just like slower..
i use google every day so will search for help there for instructions on how to save postings for back up.

thank you also for about Petrobras. My daddy is not here anymore but my mom is and she told me she will open an account for me next summer when i have some money from a summer job. So I will keep that Petrobras on a list and watch it until then.

Thank you for taking the time out in replying to me. I enjoy reading what you write and good luck to you too.
 
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March 2, 2009

SouthAmerica: In January 2004 I had a discussion with one of my best friends when I tried to persuade him to not buy GE common stock at $ 34 per share.

I gave him the same explanation that I posted on this forum when I compared IT&T stock in the early 1970’s with GE around 2004.

He did not listen to me and he bought a few thousand shares to add to his portfolio that already had a few thousand shares of GE stock.

I know that he bought GE stock to get a regular stream of dividends. My friend passed away a little over one year ago, but his wife still has the GE stock on her portfolio. Basically my friend lost both ways since they just cut the amount that GE pays in dividend to their shareholders, and GE stock traded at $ 7.50 per share today, and still heading south.

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Quote from southamerica:

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his wife still has the GE stock on her portfolio. Basically my friend lost both ways since they just cut the amount that GE pays in dividend to their shareholders, and GE stock traded at $ 7.50 per share today, and still heading south.

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The June 1994 low was $7.50. It tried to go lower in Nov-Dec 1994 but support held. The run up in GE and the overall market started from there (GE to $60) and now it has given it all back. In other words, from a technical perspective, there is hope for her that the stock might find support at this level ($7.50)
 
many companies have been decimated permanently it seems-bac,c,ge?

Not many people have witnessed this carnage to blue chip companies.

Dont know if any will recover under their current structure.

One thing for sure is when they cut dividend days of selling are sure to follow.I didnt know this when i bot it yesterday but sold in premarket today at the highs...thankfully.
 
Personally, i like GE at this current level ($7-8) for a long position as i believe it is undervalued.

It's P/E and P/S are extremely low, it has a long dividend record and it has a diversified revenue base (both categorically and geographically)
 
Even not considering the toxic sludge GE has from it's consumer financing arm, which they've been extremely secretive about (not helpful, Immelt, really), the fact they just slashed their dividend by 66% doesn't exactly give me confidence this stock has bottomed.

People say 'well you can't get in at the bottom, and even if GE bottoms around $5, what do you stand to lose?'

The answer is about 35% of my money.

When stocks drop this low, people get lured but their 'cheapness,' forgetting or not realizing that even a small further drop decimates your investment, because of proportionality.
 
GE could easily be bankrupt considering their financial exposures.



Quote from ByLoSellHi:

Even not considering the toxic sludge GE has from it's consumer financing arm, which they've been extremely secretive about (not helpful, Immelt, really), the fact they just slashed their dividend by 66% doesn't exactly give me confidence this stock has bottomed.

People say 'well you can't get in at the bottom, and even if GE bottoms around $5, what do you stand to lose?'

The answer is about 35% of my money.

When stocks drop this low, people get lured but their 'cheapness,' forgetting or not realizing that even a small further drop decimates your investment, because of proportionality.
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Quote from 1flyfisher:

my buddy works for GE ....you don't want to be buying this stock
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Is THIS your buddy??

cramer-head.jpg
 
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