Clubber,
Are you initiating a short position here, or are you short?
Are you initiating a short position here, or are you short?
General Electric - new position
- Thread starter Palindrome
- Start date
Seems like it would be better to wait for the trend to change. Either that or do bottom-up analysis and figure out whether GE is actually cheap here given reasonable assumptions about earnings etc, and not just a value trap that looks good on the chart due to anchoring bias....
Perhaps your biggest problem here is that the macro cycle is long in the tooth, and GE will get crushed by any slowdown in capital investment. So even if the stock drifts up to 18 or so by then, and management is actually turning things around, it could still get cut in half easily if the broader market wobbles.
Specterx Agreed, If GE get's to 14 in the near term, I will move my stop to 11.75 where I purchased and have a risk free trade...IF it gets to 14.
I think there will be enough interest in this stock to take us to 14 in the near term. Also, If I am correct, the long term players that bought (Or I think bought) last week... typically are not short term oriented and won't sell for 18 months... I believe.
I think there will be enough interest in this stock to take us to 14 in the near term. Also, If I am correct, the long term players that bought (Or I think bought) last week... typically are not short term oriented and won't sell for 18 months... I believe.
Larry Culp, New GE CEO, had a strong track record when he was at DHR. DHR also has several business lines similar to GE's business.
Larry apparently has a strong cost cutting mentality. Unfortunately, cost cutters tend not to make very dynamic decisions. They tend to over value the tangible and under value the intangible. Many times solutions are found in the realm of the intangible. Still, Larry's great performance at DHR was due to more than just cost cutting.
I read that GE has large unfunded pension liability and high debt burden probably related in some way to overagressive expansion in their medical division where easy customer credit ballooned accounts receivables going into the Great Recession.
GE has tremendous potential with its many patents and leadership position in many businesses. Due to the nature of some of GE's businesses, they should benefit greatly from the competent application of artificial intelligence and advanced robotics. If Larry can recruit a top AI person from Google or a similar technology company, things could get truly exciting for GE.
Larry apparently has a strong cost cutting mentality. Unfortunately, cost cutters tend not to make very dynamic decisions. They tend to over value the tangible and under value the intangible. Many times solutions are found in the realm of the intangible. Still, Larry's great performance at DHR was due to more than just cost cutting.
I read that GE has large unfunded pension liability and high debt burden probably related in some way to overagressive expansion in their medical division where easy customer credit ballooned accounts receivables going into the Great Recession.
GE has tremendous potential with its many patents and leadership position in many businesses. Due to the nature of some of GE's businesses, they should benefit greatly from the competent application of artificial intelligence and advanced robotics. If Larry can recruit a top AI person from Google or a similar technology company, things could get truly exciting for GE.