when to buy GE

NW-Bound said:
I was never a fan of Welch. Back in 2000, he was regarded as a hero and model CEO. He got GE into financial business instead of staying an industrial company, and that sowed the seeds of destruction.

Back in 1999, Welch said “my success will be determined by how well my successor grows it in the next 20 years.” The verdict is now in.
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Agree, and I was an employee of GE back 1990-95. Welch was not really a good CEO for the employee's perspective IMHO. Yes, stock price did well under him. But employee morale and attitude was in the dump. I was happy to get out of there. GE got out of their core business and into the financial stuff, the core business did not get the investment needed for long term success. I am not surprised at the results, although Immelt did not help slow that slide any.

GE stock currently right at $14.98 as I type this reply.
 
I bought VZ, CSCO, PFE, and KO on January 2nd at market open to start my Puppies of the Dow strategy, but I waited for GE. It was simply too high at the time. I got in yesterday @14.66 which now completes my Dow Puppies (or Flying 5) portfolio.
 
GE finally hit my share price magic number today so now I join many others as part owner of this mess. Woof!
 
NW-Bound said:
I was never a fan of Welch. Back in 2000, he was regarded as a hero and model CEO. He got GE into financial business instead of staying an industrial company, and that sowed the seeds of destruction.

Back in 1999, Welch said “my success will be determined by how well my successor grows it in the next 20 years.” The verdict is now in.
Click to expand...

Lets get Jack on CNBC for an interview now :LOL: .

Putting an old workhorse on steroids works for a while , but ends badly.
 
500 point upward swing today and GE still takes a slight drop, shows how much of a dog this stock is. I had posted last month that $15 was possible, but now sub-$15, perhaps $13 finds level of support....
 
The good news is that GE can't drag the Dow Jones down by much. Since it (The Dow Jones average) is price weighted, the most direct impact that GE can have when it goes to zero is 103 points. :)
 
I remember flirting with GE when it was about $8 during the financial crisis. I bought in at $12 and sold a few months ago in the low to mid $20's. Right now there are better stocks to replace it with but I am holding the dry power back to see what shakes out of this current market excitement.
 
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I bought GE in 2010 between 16 and 18 (multiple purchases). Sold all of it June 2017 @ 28.89 after I had given up hope watching it stall in low 30's while others were moving up. Fortunately, I had a bigger bet on Honeywell (HON) which I also bought as an industrial play in 2003, late 2008, and late 2011..and which I still hold (and is my 5th largest non mutual fund holding).
 
copyright1997reloaded said:
The good news is that GE can't drag the Dow Jones down by much. Since it (The Dow Jones average) is price weighted, the most direct impact that GE can have when it goes to zero is 103 points. :)
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Even better news right after: then it drops out of the index!
 
GE

This is how I'm playing it. I bought shares at $15.00 and I am selling calls against it. My goal is to sell enough cals and price appreciation to make 20% profit and then I'm out. I bought GE in the 2008 and 2009 period around $14.00 a share and got the spinoff of the their consumer credit card company for free. I am hoping that I can snag some shares of the spin off also. Might have to hodl it for longer but I think its worth it.
 
parhur said:
This is how I'm playing it. I bought shares at $15.00 and I am selling calls against it. My goal is to sell enough cals and price appreciation to make 20% profit and then I'm out. I bought GE in the 2008 and 2009 period around $14.00 a share and got the spinoff of the their consumer credit card company for free. I am hoping that I can snag some shares of the spin off also. Might have to hodl it for longer but I think its worth it.
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Hope it works out for you but I would never do this. You couldn't have gotten much for the call, e.g. a June 15 strike closed today at .87 with the stock at 14.85. Assuming it was a little higher (.15 would be generous as the premium would decrease as the price increases), we have the stock at $15 and the option at about $1. It seems to me that you don't have tons of upside but are exposed if something more serious comes out of GE on the news front...like the need to eliminate the dividend entirely.

If I thought GE were bottoming here, I would just go long and sit on it. However, it still seems to be in a downward channel...?
 
I have always wanted to buy GE but didn't, now I wouldn't. GE will need to break up spinning off core businesses. The problem is that their pension liabilities exceed breakup value. Not a pretty sight.

Wait until this process has exhausted itself. A retired former GE EE is a neighbor of mine, I feel sorry for him and his wife. Their retirement won't be as expected.
 
I managed to sell my few hundred shares of GE in my taxable account for a very slight profit on the way down. So slight I don't care if I have to pay CGs on it, as it will only be a few dollars. Sadly, I bought GE at $19.50 in my Roth. I may buy more at a very low price to lower my basis, then put in a limit sale order and hope for a jump (for some reason) so I can get out relatively even. If not, I'll hold forever and see what happens. It won't be the first time.
 
Shanky said:
In today at $16.25 I was planning on waiting for $8, but the plummet seems to have stalled for a bit. Hopefully I will be out at $18 and back in at $8.
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A little over $5 to go. I might be back in by April fools day!
 
GE got down to $12.73 today. I wonder if I will have the guts to buy in when it hits $8.
 
Certainly not in the several day interval of time after GE announces a dividend cut and before Yahoo Finance is actually updated to reflect this.

Not a hypothetical.

-gauss
 
GE has a book value of $9 per share, at $12+ you are getting a heck of a lot better value than at the start of the thread at $20 and little has actually changed for the company other than they hold 13 billion of short term debt in their total debt structure so they are very susceptible to an uptick in rates and they announced a 7 billion dollar loss in the long term care insurance market. If the market were to continue to go up, that saves their pension, a major decline in stocks makes the pension an albatross of enormous proportions, keeps them from raising money by equity offerings - getting more likely as their financial condition is becoming more apparent and spinning off an asset valued at $1.50 via share price only realizes $1.00 doesn't work for them any more. I am sure they wish they had the 24 billion they spent on share buybacks in 2016 & 2017.... they would get about 14 billion for issuing the same amount at today's price and they may have to do it....
 
Running_Man said:
... I am sure they wish they had the 24 billion they spent on share buybacks in 2016 & 2017.... they would get about 14 billion for issuing the same amount at today's price and they may have to do it....
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Who would buy the new issued shares as the equity is diluted further?

The stock buyback was great to prop up the stock price so that GE management can cash out on stock options. So, that money was not all wasted. :cool:
 
What a difference a day makes (when a Buffet rumor is in the air).
 
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