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