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Old 10-09-2008, 10:01 PM   #21
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Dividend Stocks - The Dividend Daily Blog Archive General Electric May be Next to Cut its Dividend (GE)
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Originally Posted by FIRE'd@51 View Post
Which analysts? Jeff Immelt said a couple of weeks ago that the dividend was safe through 2009. I think it's likely the dividend won't be increased, which is a big deal for GE, but a cut would cause Immelt to lose all credibility.
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Old 10-09-2008, 10:26 PM   #22
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No analysts names are mentioned in the blog. The BAC situation is not even comparable. BAC hasn't earned its dividend in three of the past four quarters. Plus they have aquired two large companies (CFC and MER) with all the attendant write down risks. GE, on the other hand, has had earnings in excess of their dividend every quarter, and current estimates for the 3rd quarter and next year are in excess of the dividend.
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Old 10-10-2008, 06:29 AM   #23
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GE earnings are .43-.45 right at expectations. (Wow what a surprised GE hit its numbers, how often has the company done this over the last generation or two.) The BOD say they will maintain the dividend at $1.24 . So at ~$20 a share it is pay 6% dividend, it is earning make the PE around 11.

I don't really care if the crazy market drives the price of the stock down to $10 a share today. I'm sticking with it. On another board somebody suggested that short term GE bonds yielding 6-7% maybe a better investment cause during a bankruptcy they'll get paid off.

I am pretty sure that stock will trade considerably below its current price sometime in the next few weeks, I don't really care. Uncle Sam is offering to pay 1.7% to loan them money for two years, GE is going to give me 3x that. The way I figure it if GE files for bankruptcy in the next couple of years, neither the economy nor the financial markets or the bankruptcy courts will be working worth a damn. Now Uncle Sam promises to give me the money back after two years. GE credit rating is AAA but since the ratings is from the almost useless credit rating agencies I'm not sure that means much.

On the other hand I have a pretty good measure of the IQ of the 535 members of Congress and the top 100 folks in the Bush administration, I'll take the top 600 folks at GE any day.
In short, I trust GE more than Uncle Sam
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Old 10-10-2008, 08:03 AM   #24
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going to go out on a limb and say GE will bottom out around $14 or $15
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Old 10-10-2008, 10:52 AM   #25
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i got more today around 19, but expect it to keep dropping a bit....might see 16 at this rate...that's my next limit order
I bought some today for the first time around 19... Will buy again if it dips as you say it might. Hopefully any additional dilution will be kept to minimum. their qtrly report was not half as bad as some were projecting. If their finance division hangs in their, we may not see dip in pps

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Old 10-10-2008, 06:45 PM   #26
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Man, if my zecco account was ready I was planning to do a 18.5 limit. The low was 18.4. Anyone with market experience able to tell me if I my 18.5$ buy would have gone through today. Just wondering. I am kinda hoping it wouldn't have just because I would have lost out either way.

Do you think GE will go back down to 19?

Thanks
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Old 10-13-2008, 10:42 AM   #27
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is it yahoo or is GE down today?
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Old 10-13-2008, 10:48 AM   #28
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Let's stop using the "other shoe" metaphor - you don't realize that you bother the "Ghost of Imelda Marcos' Shoe Closet" who rummages around, finds another one, :::Thump::: and waits until summoned again.

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Old 10-14-2008, 10:02 AM   #29
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Old 10-16-2008, 05:51 PM   #30
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Just got back from golfing and I see my limit order went through at $18.50. My next one is at $15.00. I'm just rebalancing my asset allocation. Honest.
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Old 10-25-2008, 08:25 AM   #31
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This market is simply crazy. I have thought of buying some more GE. I bought some at 22.50 and then got scared and took a profit at 24.40. However, I also have some I bought at 26.50 and bought some at 19.50. I guess at those prices the now 17.83 price is a good buy but who knows what this market is going to do. However, I am a long term optimist and feel that 3 or 4 years from now we will all be kicking ourselves for not buying more.
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Old 10-25-2008, 08:37 AM   #32
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This market is simply crazy. I have thought of buying some more GE. I bought some at 22.50 and then got scared and took a profit at 24.40. However, I also have some I bought at 26.50 and bought some at 19.50. I guess at those prices the now 17.83 price is a good buy but who knows what this market is going to do. However, I am a long term optimist and feel that 3 or 4 years from now we will all be kicking ourselves for not buying more.
Agreed. When common sense tells you good companies can't go lower, they do.

And as for the ghost of Imelda, that would be truly scary because she's still alive, last I heard -- and the ghost of a closet would be truly supernatural!
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Old 10-25-2008, 09:14 AM   #33
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my price target of $14 - $16 still stands
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Old 10-26-2008, 04:41 AM   #34
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This financial crisis could cause many business failures that have little to do with financial services. It is a set of dominoes that could begin falling in other industries and cause a chain reaction.

IMHO - if one is in equities... is a time to stay highly diversified. For the average small investor that would mean ETFs or mutual funds.

I do not believe that GE will fail... but they are going to be damaged and it is likely to take a while for them to recover (because of our economy). Their customers are in industries that require large capital expenditures. The government(s) is one of their customers... but the governments around the world are broke because of the impending boomer retirement and the bailout. Spending is going to be tight for a number of years.

Short of getting a warren buffet deal... I would not buy. IF you want to own it... buy berk hatty... then you can get the buffet deal.
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Old 10-26-2008, 08:41 AM   #35
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-- and the ghost of a closet would be truly supernatural!
Well, see, that's the current explanation for all the weirdness in the world !

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Old 10-26-2008, 09:52 AM   #36
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This financial crisis could cause many business failures that have little to do with financial services. It is a set of dominoes that could begin falling in other industries and cause a chain reaction.

IMHO - if one is in equities... is a time to stay highly diversified. For the average small investor that would mean ETFs or mutual funds.

I do not believe that GE will fail... but they are going to be damaged and it is likely to take a while for them to recover (because of our economy). Their customers are in industries that require large capital expenditures. The government(s) is one of their customers... but the governments around the world are broke because of the impending boomer retirement and the bailout. Spending is going to be tight for a number of years.

Short of getting a warren buffet deal... I would not buy. IF you want to own it... buy berk hatty... then you can get the buffet deal.
I would like to say that based on keeping my eyes open for many years, this very well articulated opinion is mostly worthless as a guide to what to do. All scenarios, including any that I might make, are the same. We cannot know the future. What we do incontrovertibly know is that right now major US companies are very cheap, relative to anything most of us have ever seen during our entire investing lifetimes, relative to governments, relative to historical PE10s, relative to Tobin's Q.

Ponder that.

Ha
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Old 10-26-2008, 09:55 AM   #37
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I would like to say that based on keeping my eyes open for many years, this very well articulated opinion is mostly worthless as a guide to what to do. All scenarios, including any that I might make, are the same. We cannot know the future. What we do incontrovertibly know is that right now major US companies are very cheap, relative to anything most of us have ever seen during our entire investing lifetimes, relative to governments, relative to historical PE10s, relative to Tobin's Q.

Ponder that.

Ha
I take it you don't agree.
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Old 10-26-2008, 10:09 AM   #38
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I take it you don't agree.
What I mean is, based on today's prices most large US companies will produce acceptable results over time for todays investors. Whch ones will be best, when they will stop going down, etc., etc. are mostly beyond knowing. Even the crappiest stuff may perform best, if it survives. But it will hard to do badly over time with high quality equities at today's prices.

Ha
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Old 10-26-2008, 03:09 PM   #39
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What I mean is, based on today's prices most large US companies will produce acceptable results over time for todays investors. Whch ones will be best, when they will stop going down, etc., etc. are mostly beyond knowing. Even the crappiest stuff may perform best, if it survives. But it will hard to do badly over time with high quality equities at today's prices.

Ha
Yep, and GE currently yielding almost 7% is certainly attractive. And if any company can keep from cutting their dividend you'd certainly think that GE would be one of those.
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Old 10-26-2008, 04:32 PM   #40
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Yep, and GE currently yielding almost 7% is certainly attractive. And if any company can keep from cutting their dividend you'd certainly think that GE would be one of those.
Agreed. Even if GE treads water for a few years before recovering, IF they can maintain this dividend through it and you can reinvest these high dividend yields at depressed prices, it would be a very solid long term play since it's a pretty safe bet they ain't going under. Again, that's IF they can maintain the dividend or at least close to it.
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