GE An $ 8 stock by December?

[Freedom56]

For 20 years, I have always used bond ratings as a start for investigating good companies. One thing is that ratings agencies always lag and are compromised by some of the companies they rate. It is like big brokers who maintain buy ratings on stocks. Nortel never had a sell rating.

In the case of GE, they have been losing money for years and taking writing down their investments which have been disasters. They have reported negative cash flow for years. They are under SEC and Justice department investigation for accounting fraud. Yet the rating agencies still rate their bonds BBB+ which indicates that the rating agencies have no credibility whatsoever. This is no different than those same agencies rating subprime mortgage debt at AAA. The problem with GE is they have so much debt that they will never pay back. Think of the losses that all those passive bond funds will suffer when they default on that debt.

It is always a good idea to read research reports from dissenting voices (those few analysts that issue sell ratings) prior to investing in a particular company just for their point of view. The vast majority will have a buy ratings. In the case of GE there was one, Stephen Tusa of JP Morgan, who issued a sell back in 2016 when GE traded above $32 and reiterated his sell a few weeks ago. In the case of of Harry Markopolis, I would heed his warning.

 

[fireorbust]

I have 3K share I bought at $13 thinking "it can't go any lower" That was over a year ago. It's been down to $6.50 and up above $11 since. I won't sell now until (or if) I have a return. If it continues to drop, I'll use as a lesson and a tax loss to manipulate my earnings in future years to keep under ACA limits.

Who knows, maybe the greatest turn around story ever.

 

[aja8888]

I have 3K share I bought at $13 thinking "it can't go any lower" That was over a year ago. It's been down to $6.50 and up above $11 since. I won't sell now until (or if) I have a return. If it continues to drop, I'll use as a lesson and a tax loss to manipulate my earnings in future years to keep under ACA limits.

Who knows, maybe the greatest turn around story ever.

If you haven't read this report yet, I would encourage looking at the first 15 pages or so.

http://fm.cnbc.com/applications/cnb...9/8/15/2019_08_15_GE_Whistleblower_Report.pdf

 

[davebarnes]

Well, I never buy individual stocks as my track record is: either 50% or 100% decline.
But, you guys convinced me to take a flier on GE.
I bought 2000 shares at $8.4 and sold 1000 a week ago.
The remaining 1000 shares are up 37% or $3500 or 17 nights in AirBnB.
Could be time to "blow that dough".

 

[Car-Guy]

Quote:
Originally Posted by Bigdawg
Dumped the last of my GE last week. I was down to 15 shares. Good riddance.

Quote:
Originally Posted by Car-Guy
I only have 2500 shares that I bought in mid Aug at ~8.25 so it's not a big deal to me. It's a gamble but that's what swing trading is all about from my POV. I've got a "good to cancelled" sell order in at 11 but if it creeps up to 10, I'll probably take it then unless there is news that encourages me to hold longer.

In the past, my swing trading was measured in days (or sometimes a week or two). Now it's stretched out to many weeks or even a few months.

Finally got out yesterday at 11. Now I wonder if I should have kept it longer But hey, ~7k profit in ~3 months on a ~21k investment is ok by me.



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The above was posted in another thread (I Like Oil) last week.

 

[Jerry1]

Finally got out yesterday at 11. Now I wonder if I should have kept it longer But hey, ~7k profit in ~3 months on a ~21k investment is ok by me.

When I’m at the casino, I always feel good about getting out with a profit. A 30%+ win is a good win. Always better than leaving with a loss. And, it always feels like I should have kept playing. After all, I was doing so well. But, when I keep playing, I generally end up losing. Getting out when the getting is good is always a good strategy.

 

[Car-Guy]

When I’m at the casino, I always feel good about getting out with a profit. A 30%+ win is a good win. Always better than leaving with a loss. And, it always feels like I should have kept playing. After all, I was doing so well. But, when I keep playing, I generally end up losing. Getting out when the getting is good is always a good strategy.

I gamble for fun, not profit, and I have the win/loss statements to prove it. Fortunately I've had a little better luck with swing trading. And I have the trade statements to prove that too.

Both are gambles but the casinos are more exciting and offer instant gratification or instant disappointments. Swing trading usually takes me days or weeks to realize rewards or disappointments. Swing trading doesn't offer the same thrill levels but it is "usually" more profitable for me. YMMV!

 

[ownyourfuture]

After all, I was doing so well. But, when I keep playing, I generally end up losing. Getting out when the getting is good is always a good strategy.

Yup. Pigs get fat, & hogs get slaughtered