by The Investment U Research Team
As the details of yesterday’s shareholder meeting at General Electric (NYSE: GE) hit newsstands, we are left with the impression that GE is looking better and better as an investment.
Yes, shareholders were pretty livid about the dividend cut and the amount of CEO Jeff Immelt’s compensation. Yes, earnings have dropped 35% and GE has a number of divisions like it’s entertainment and financing units that have performed poorly. And yes, there was even talk of breaking up GE into smaller companies.
But it’s all a smokescreen.
GE is looking better considering its size, and markets that it serves. In fact, earnings actually beat forecasts. Yes, forecasts were low – but again who cares, earnings forecasts have all been guesswork anyways over the last few quarters.
After the dotcom bust, GE shares were cut in half. Since its high of over $41 in 2007, the share price has plummeted even worse, over seventy percent. But it’ll come back.
GE is looking better as one of the broadest reaching companies producing some of the most complicated products on the planet. From engines to turbines to power plants, GE has made itself a player across almost all sectors and most countries.
We’ve talked before about how GE is closer to a mutual fund than a single stock, but the truth of the matter is that GE will emerge from this recession as it has from past ones – just as strong. Picking up some GE stock at below $15 is about the clearest long-term value play we can think of.
Symbols mentioned in this article: GE.
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One Response to “GE Looking Better and Better”
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July 20th, 2009 at 10:04 pm
The laziest damn article I have ever seen. Have you even looked at GE’s Qs or Ks? Did you even know that GE publishes one for GE Cap one for Ge Industrial another consolidated report? Look at GE as a bank or even better what it would have to do to convert to a bank (add an enormous amount of capital). Have you no concern for the fact that the US govt just told its only financial comparable to take a hike? Did you know that the govt backed commercial paper funding that they have rolled greater than 45Billion dollars on will expire at the end of Oct 31? This post is a joke. The writer should be banned. You might as well stick a fork in your credibility.
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