GE - a good value?

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552BB
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GE - a good value?

Post by 552BB » Tue Nov 21, 2017 10:07 am

Good morning BH,

Going on my hike this morning.

I have not searched all the posts, so if comments have already been made, I have not read them.



I am looking at GE right now. It has come down quite a bit. It has not reached a new high for more than fifteen years. Wow.

From what I can see, it is still a potentially great company.

It is a leader in Aviation, Power, and Healthcare.



Do any of you work for GE. I would love to hear your opinions and insights.

Do others have any insights. What is your opininon of the company.



Going on my hike now.

Any input into GE would be great.



Thanks guys and gals.



:sharebeer

Valuethinker
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Re: GE - a good value?

Post by Valuethinker » Tue Nov 21, 2017 10:18 am

There was a recent discussion if you search.

If anyone here works for GE, they could be in bad trouble if they comment on the company:

- breach of own internal code of conduct re discussion of the company (I do not discuss my employer on Facebook, do you?)

- possible breach of SEC insider dealing rules (close periods, etc.)

Otherwise it's just talk. This is a Forum devoted to market efficiency and the use of low cost index funds, and so is not a particularly good place to discuss stock tips.

Worth checking the Siemens statement on gas turbines, btw. GE is their main competitor.

rkhusky
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Re: GE - a good value?

Post by rkhusky » Tue Nov 21, 2017 10:32 am

If you want to invest in cheap companies, find a good value index fund. Then you are not subject to single stock risk. Companies are cheap for a reason. Some will rebound and some will crash. It's hard to know which in advance.

over45
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Re: GE - a good value?

Post by over45 » Tue Nov 21, 2017 10:34 am

I have been watching GE decline and the term "catch a falling knife" is what comes to mind. When the rest of the market is going up and it is going down - there is more than meets the eye behind the scenes. Can't see GE going away, but I'll wait until it builds a solid base before buying any. Just my 2 cents.

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munemaker
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Re: GE - a good value?

Post by munemaker » Tue Nov 21, 2017 10:36 am

I recommend buying GE as part of a mutual fund, rather than as an individual holding.

PFInterest
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Re: GE - a good value?

Post by PFInterest » Tue Nov 21, 2017 10:38 am

after 100 posts you think this is the place to ask about individual stocks?

ChickenLittle
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Re: GE - a good value?

Post by ChickenLittle » Tue Nov 21, 2017 10:59 am

I like VTI (Vanguard total market). It has some GE.

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Re: GE - a good value?

Post by bloom2708 » Tue Nov 21, 2017 11:06 am

ChickenLittle wrote:
Tue Nov 21, 2017 10:59 am
I like VTI (Vanguard total market). It has some GE.
+1

Scratch your "itch" to buy something by buying more Total US Stock index (mutual fund or ETF). :wink:
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Jack FFR1846
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Re: GE - a good value?

Post by Jack FFR1846 » Tue Nov 21, 2017 11:13 am

I thought similar things about Polaroid some years back. How to turn $4000 in cash into a broker's balance of $15. Nope.
Bogle: Smart Beta is stupid

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Re: GE - a good value?

Post by KlangFool » Tue Nov 21, 2017 11:14 am

OP,

1) Can GE go up 10X to 30X? If not, why is it worthwhile for you to gamble on this stock? The possible return does not justify taking the risk of this individual stock.

2) You held plenty of GE stock in a total market index fund. So, why would you want to buy more?

KlangFool

552BB
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Re: GE - a good value?

Post by 552BB » Tue Nov 21, 2017 1:21 pm

Hello all,



Thanks for the posts.


rkhusky wrote:
Tue Nov 21, 2017 10:32 am
If you want to invest in cheap companies, find a good value index fund. Then you are not subject to single stock risk. Companies are cheap for a reason. Some will rebound and some will crash. It's hard to know which in advance.


Hello rkhusky,



I have the TSM and S&P index funds in various retirement accounts. They make up large majority of my total investments.

I also agree with the remainder of your post.

GE is becoming cheap, and any insight I can get into that is what I seek.

As far as finding out if this company is a future bust or boom IS hard to know in advance, but looking into it is neither too difficult, nor in my opinion foolish.



I always like to ask 'WHY'.



Reading all your posts is always entertaining..... and sometimes insightful.



Thanks for all who have posted



:sharebeer
Last edited by 552BB on Tue Nov 21, 2017 1:23 pm, edited 1 time in total.

WhiteMaxima
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Re: GE - a good value?

Post by WhiteMaxima » Tue Nov 21, 2017 1:22 pm

I won't feel surpise if W Buffet announces he will take a big chunk of GE at $16 level. Yes, it is risky in a single stock. But I like GE old solid business. Index fund is no safer at this level than GE.

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munemaker
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Re: GE - a good value?

Post by munemaker » Tue Nov 21, 2017 1:29 pm

WhiteMaxima wrote:
Tue Nov 21, 2017 1:22 pm
Index fund is no safer at this level than GE.
Uh, yes, an index fund is much, much safer that GE. GE is about 0.7 weight of the S&P 500, so if you buy the index, you are buying GE along with 499 other companies.

https://www.slickcharts.com/sp500

The reason is any single stock can go to zero.

Buy the index and you are also buying GE!

chevca
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Re: GE - a good value?

Post by chevca » Tue Nov 21, 2017 1:37 pm

A recent thread...

viewtopic.php?f=10&t=232179

FIBoston
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Re: GE - a good value?

Post by FIBoston » Tue Nov 21, 2017 1:42 pm

PFInterest wrote:
Tue Nov 21, 2017 10:38 am
after 100 posts you think this is the place to ask about individual stocks?
I've seen people ask for recommendations on the best place to buy pleated pants on this forum. I don't think it's that unreasonable for someone to want to start up a thread about the recent trends of one the last remaining member of the DJIA original 12 and what that means for potential investors... Even if OP can buy GE with an index fund.

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munemaker
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Re: GE - a good value?

Post by munemaker » Tue Nov 21, 2017 1:52 pm

irishnick23 wrote:
Tue Nov 21, 2017 1:42 pm
PFInterest wrote:
Tue Nov 21, 2017 10:38 am
after 100 posts you think this is the place to ask about individual stocks?
I've seen people ask for recommendations on the best place to buy pleated pants on this forum. I don't think it's that unreasonable for someone to want to start up a thread about the recent trends of one the last remaining member of the DJIA original 12 and what that means for potential investors... Even if OP can buy GE with an index fund.
What would be the benefit of buying GE outside of an index fund?

FIBoston
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Re: GE - a good value?

Post by FIBoston » Tue Nov 21, 2017 2:09 pm

munemaker wrote:
Tue Nov 21, 2017 1:52 pm
irishnick23 wrote:
Tue Nov 21, 2017 1:42 pm
PFInterest wrote:
Tue Nov 21, 2017 10:38 am
after 100 posts you think this is the place to ask about individual stocks?
I've seen people ask for recommendations on the best place to buy pleated pants on this forum. I don't think it's that unreasonable for someone to want to start up a thread about the recent trends of one the last remaining member of the DJIA original 12 and what that means for potential investors... Even if OP can buy GE with an index fund.
What would be the benefit of buying GE outside of an index fund?
It should read buying GE "through" and index fund. Sorry, unclear language.

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Taylor Larimore
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Re: GE - a good value?

Post by Taylor Larimore » Tue Nov 21, 2017 2:32 pm

WhiteMaxima wrote:
Tue Nov 21, 2017 1:22 pm
Index fund is no safer at this level than GE.
WhiteMaxima:

Diversified index funds are MUCH safer than individual stocks.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

BogleMelon
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Re: GE - a good value?

Post by BogleMelon » Tue Nov 21, 2017 2:37 pm

OP
What makes you believe that you know more than everyone else including Wall Street full time traders? What specifically you see that all of other people can not see?
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

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Re: GE - a good value?

Post by alpine_boglehead » Tue Nov 21, 2017 2:44 pm

BogleMelon wrote:
Tue Nov 21, 2017 2:37 pm
OP
What makes you believe that you know more than everyone else including Wall Street full time traders? What specifically you see that all of other people can not see?
Image
Last edited by alpine_boglehead on Tue Nov 21, 2017 2:52 pm, edited 1 time in total.

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alpine_boglehead
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Re: GE - a good value?

Post by alpine_boglehead » Tue Nov 21, 2017 2:50 pm

BogleMelon wrote:
Tue Nov 21, 2017 2:37 pm
OP
What makes you believe that you know more than everyone else including Wall Street full time traders? What specifically you see that all of other people can not see?
It's called anchoring. GE was once at $60, so it's easy to be led to believe that the "intrinsic" value of GE is just that.

Image

If the same chart depicted the S&P 500, many would say "great time to buy".

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nisiprius
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Re: GE - a good value?

Post by nisiprius » Tue Nov 21, 2017 2:52 pm

552BB wrote:
Tue Nov 21, 2017 10:07 am
...I am looking at GE right now. It has come down quite a bit. It has not reached a new high for more than fifteen years.... From what I can see, it is still a potentially great company....
Obviously, the stock would not be at $17.83 a share if there were a consensus that it is worth much more than $17.83 a share.

The mere fact that the price has come down does not tell you much. All it tells you is that a lot of people do not think it is as great a company as they did a year ago. It could be because they are all wrong and you are right. It could also be that it is not as great a company as it was a year ago.

Stocks are not like cans of soup at a supermarket, where the regular price is $2.99 a can with 500 days of remaining shelf life. and the next day the same display of the same cans of soup goes on sale at $1.49 a can with 499 days. It is more like day-old bread, where the price is lower because it is not the same as it was a day ago.

Think all you like about "still a leader in aviation, power, and healthcare" (and balance that against "not a leader in appliances, plastics, or loans"). The people who say "$17.83 and no more" have run numbers on the balance sheet. I don't know how to do that. Do you?

In general, I think it is deeply unwise to make any investment actions based on any news that is so well-known that it is not only in the Wall Street Journal, but even the Milwaukee Journal.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

mrgeeze
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Re: GE - a good value?

Post by mrgeeze » Tue Nov 21, 2017 3:00 pm

552BB wrote:
Tue Nov 21, 2017 10:07 am
Good morning BH,

Going on my hike this morning.

I have not searched all the posts, so if comments have already been made, I have not read them.



I am looking at GE right now. It has come down quite a bit. It has not reached a new high for more than fifteen years. Wow.

From what I can see, it is still a potentially great company.

It is a leader in Aviation, Power, and Healthcare.



Do any of you work for GE. I would love to hear your opinions and insights.

Do others have any insights. What is your opininon of the company.



Going on my hike now.

Any input into GE would be great.



Thanks guys and gals.



:sharebeer

Pull The TRIGGER !!!
Buy Buy Buy !!

I'm a guy on the internet. Let me help you spend your money

Seriously, while the majority of my wealth migrates toward a 3 fund portfolio, I still like buying and selling stocks.
It keeps my brain active.
So, I keep a small portion (about 5%) of my money in a stock trading fund.
I buy and sell stocks and, if wildly successful for a long while, I will by myself a 53' sportfishermen.
But probably not.

I find GE under 20 to be a very compelling buy. I have purchased about 1000 shares in the last 2 weeks.
It may take awhile but if it goes to 25 in 3 years I'll be able to pay for one outrigger for the boat.

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bottlecap
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Re: GE - a good value?

Post by bottlecap » Tue Nov 21, 2017 3:16 pm

Go with your gut.

Good luck,

JT

CppCoder
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Re: GE - a good value?

Post by CppCoder » Tue Nov 21, 2017 3:17 pm

I'd be careful. I don't think they'll have much of a future if they ever lose that Edison guy...and, I hear Facebook and Uber are poaching talent. :shock:

over45
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Re: GE - a good value?

Post by over45 » Tue Nov 21, 2017 3:29 pm

I'd check to see what the insiders are doing. If they have sold on the way down instead of buying then you know what they think. They were big into mortgage/finance and my guess is that there may be some hidden issues weighing them down.

tesuzuki2002
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Re: GE - a good value?

Post by tesuzuki2002 » Tue Nov 21, 2017 3:39 pm

I used to work for GE.... Still own a lot of stock I purchased back when the stock crashed down to $5~ I sold some when it was peaking last summer... I'll be picking some more up. I'm looking for $15/$16 range.

GibsonL6s
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Re: GE - a good value?

Post by GibsonL6s » Tue Nov 21, 2017 3:45 pm

Seeking Alpha, Motley Fool and Morningstar are great places to discuss individual stocks

Valuethinker
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Re: GE - a good value?

Post by Valuethinker » Tue Nov 21, 2017 4:49 pm

alpine_boglehead wrote:
Tue Nov 21, 2017 2:50 pm
BogleMelon wrote:
Tue Nov 21, 2017 2:37 pm
OP
What makes you believe that you know more than everyone else including Wall Street full time traders? What specifically you see that all of other people can not see?
It's called anchoring. GE was once at $60, so it's easy to be led to believe that the "intrinsic" value of GE is just that.

Image

If the same chart depicted the S&P 500, many would say "great time to buy".
Yup.

Nortel fell from $125 to $25 and I "anchored" on that. This stock was once nearly 25% of the Canadian stock index, and the world's largest or 2nd largest telecoms equipment maker (before Alcatel-Lucent merger).

Sold it in a charity sale for $0.01 a few years later.

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cfs
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Re: GE - a good value?

Post by cfs » Tue Nov 21, 2017 5:00 pm

Old conversations here and in the good ole Diehards forum:

"Owning GE [General Electric] is like owning a mutual fund."
"Owning BRK [Berkshire Hathaway] is line owning a mutual fund."

Caveat Emptor.

You have a Happy Thanksgiving, Merry Christmas, and thanks for reading.
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over45
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Re: GE - a good value?

Post by over45 » Tue Nov 21, 2017 5:57 pm

Nortel fell from $125 to $25 and I "anchored" on that.
Me too. Sold at $7.

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KlingKlang
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Re: GE - a good value?

Post by KlingKlang » Tue Nov 21, 2017 6:09 pm

Does anyone remember a Dow 5 company named Westinghouse Electric Corporation? I used to be an employee. It was too big to fail and frequently swapped executives with GE. I have also worked at (not for) GE. Not much difference.

blmarsha123
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Re: GE - a good value?

Post by blmarsha123 » Tue Nov 21, 2017 6:31 pm

What's the difference (or rather, what's similar) between GE in 2017 and IBM in 1993? Maybe that's what the OP is trying to fathom. Is it worth the bet?

If I remember correctly, IBM was in the 40s in mid-1993. Gerstner had just come aboard. A year later, IBM was in the 80s and by 1995, 120. I believe that the 6 year return (mid-1993 to mid 1999) was close to 50% per year (reinvested).

Not a bad bet, against all those who said that IBM was toast then.

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arcticpineapplecorp.
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Re: GE - a good value?

Post by arcticpineapplecorp. » Tue Nov 21, 2017 6:33 pm

alpine_boglehead wrote:
Tue Nov 21, 2017 2:50 pm
BogleMelon wrote:
Tue Nov 21, 2017 2:37 pm
OP
What makes you believe that you know more than everyone else including Wall Street full time traders? What specifically you see that all of other people can not see?
It's called anchoring. GE was once at $60, so it's easy to be led to believe that the "intrinsic" value of GE is just that.

Image

If the same chart depicted the S&P 500, many would say "great time to buy".
maybe. but it's not just price that matters. it's total return. So instead of just looking at a price chart let's compare the growth of the total US stock market index fund (in blue below), the S&P500 index fund (in orange below) and GE (in green below) going back to 10/24/1997 (not sure why you picked that date in your price chart but we'll use that in the chart below). GE was a wilder ride over the past 20 years than the total market (or S&P500) and ended up far lower (only made 42.26% over the past 20 years compared to 314.54% for the total stock market index and 295% for the S&P500.

Image
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workerbeeengineer
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Re: GE - a good value?

Post by workerbeeengineer » Tue Nov 21, 2017 10:08 pm

We have held GE for approximately 15 years. Even with all dividends reinvested we're now down 14%. We will probably (irrationally) hold onto it as my first job out of college for 3 years was with GE (also still have a coffee mug with the GE "meatball" :happy ). I will avoid possibly getting this thread locked by avoiding dwelling too much on the two previous CEO (Welch and Immelt) objective performance. Instead, as others have already commented, will comment that buying GE at this point imo is a falling knife. I observed another BH thread that asked if anyone keeps a bad investment as a monument to their bad choices. For me, it's become GE. On the other hand, I do hope they turn it around as they do have some good businesses and people. Another post commented on the fallacy of a "safe blue chip". That applies as well. Many years after we started investing and many lessons learned...index funds make up the core of our portfolio. Long live Saint Jack!

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badbreath
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Re: GE - a good value?

Post by badbreath » Tue Nov 21, 2017 10:59 pm

I have been watching GE for more then 25 years and do not see a strategy other then selling off divisions .
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx

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F150HD
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Re: GE - a good value?

Post by F150HD » Tue Nov 21, 2017 11:02 pm

Valuethinker wrote:
Tue Nov 21, 2017 4:49 pm
Yup.

Nortel fell from $125 to $25 and I "anchored" on that. This stock was once nearly 25% of the Canadian stock index, and the world's largest or 2nd largest telecoms equipment maker (before Alcatel-Lucent merger).

Sold it in a charity sale for $0.01 a few years later.
You didn't hang around for the Nokia conversion?

Sockpuppet
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Re: GE - a good value?

Post by Sockpuppet » Wed Nov 22, 2017 12:07 am

To put it bluntly, GE is a dumpster fire, has no idea what it wants to be, and has been horribly managed for years.

They bought NBC at a high price and sold low. They bought a bunch of mortgage companies before the crash for a pretty penny and then unloaded them at a low price. And they bought a major oil company when prices were at an all time high and are now unloading it while prices are low.

It's just shocking how consistently off they've been on practically everything in the last 20 years.

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whodidntante
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Re: GE - a good value?

Post by whodidntante » Wed Nov 22, 2017 1:46 am

The good:
I don't really care about the second jet; that was the symptom not the underlying cause.
Stock analysts now hate it (ok this is the contrarian in me). Not long ago the chorus said to buy this gem of stock.
They are a leader in aviation.
Some of their efforts in software and AI appear promising, and AI's hype cycle has peaked.
The terrible press and investors with pitchforks will lead to cost cutting and possibly a spinoff that is good for shareholders.

The bad:
It's a weird environment to be struggling this much. Many of their wounds are self-inflicted.
It's a very complex business and you can read all day and still be learning some basics at the end of that day. You won't ever really understand GE and you won't be able to follow all of the markets they participate in. The people who work there don't understand it.
GE has made some low margin businesses their bedrock.
They missed their last earnings estimates really badly.
It really isn't cheap despite the beating. You need some kind of turnaround story to call this stock cheap.
Their financials are weak for a company this large.

I don't plan to buy it (or any other single stock). But value plays always look awful right before they don't. If you believe, put the order in.

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whodidntante
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Re: GE - a good value?

Post by whodidntante » Wed Nov 22, 2017 1:55 am

Kind of a funny story. I listened to an interview with GE's CEO. He said he was not aware that a spare jet was following him on his trips because he is a 100 hour a week guy and was too focused on his work. Immediately after, he was talking about the business, and he said you have to be aware of your surroundings. I guess the irony of his own comment was lost on him. Or maybe the aluminum?

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Re: GE - a good value?

Post by cfs » Wed Nov 22, 2017 11:52 am

whodidntante wrote:
Wed Nov 22, 2017 1:55 am
. . . and he said you have to be aware of your surroundings . . .
Really funny, thanks!
~ Member of the Active Retired Force since 2014 ~

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Re: GE - a good value?

Post by acanthurus » Wed Nov 22, 2017 12:45 pm

Removed
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sometimesinvestor
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Re: GE - a good value?

Post by sometimesinvestor » Wed Nov 22, 2017 1:41 pm

I realize Jim Cramer is not popular on this site but I thought his analysis of GE rently seemed pretty good to me. Basicaly, he said that at current levels GE was probably not a good investment. Its dividend yield (below 3) is comparable to Mcdonalds and P+ G both of which have much better cash flow and hencea safer dividend . He suggested that at 15 the dividend would be about 3% and it might make some sense to buy it at those levels as a dividend play and that eventually you would probably make money even though a purchase at those level could still underperform the market. Certainly looking at charts ir appears that holding GE if it gets over 30 would be a bold decision.

552BB
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Re: GE - a good value?

Post by 552BB » Wed Nov 22, 2017 3:57 pm

Good afternoon BH,



Thanks for all the input. I have enjoyed reading the posts.

I will reply to some other posts soon, but right now I am flying around the country and my time is limited.






nisiprius wrote:
Tue Nov 21, 2017 2:52 pm
552BB wrote:
Tue Nov 21, 2017 10:07 am
...I am looking at GE right now. It has come down quite a bit. It has not reached a new high for more than fifteen years.... From what I can see, it is still a potentially great company....
Obviously, the stock would not be at $17.83 a share if there were a consensus that it is worth much more than $17.83 a share.

The mere fact that the price has come down does not tell you much. All it tells you is that a lot of people do not think it is as great a company as they did a year ago. It could be because they are all wrong and you are right. It could also be that it is not as great a company as it was a year ago.

Stocks are not like cans of soup at a supermarket, where the regular price is $2.99 a can with 500 days of remaining shelf life. and the next day the same display of the same cans of soup goes on sale at $1.49 a can with 499 days. It is more like day-old bread, where the price is lower because it is not the same as it was a day ago.

Think all you like about "still a leader in aviation, power, and healthcare" (and balance that against "not a leader in appliances, plastics, or loans"). The people who say "$17.83 and no more" have run numbers on the balance sheet. I don't know how to do that. Do you?

In general, I think it is deeply unwise to make any investment actions based on any news that is so well-known that it is not only in the Wall Street Journal, but even the Milwaukee Journal.


Hello nisprius,



I agree with your post, especially the last part. But I do have insights into part of this company that most do not. I fly under GE engines all day and have so for decades now. I am familiar with the GE aviation part of the business. Some of the other parts of the business, not so much.

This is why I inquire on this forum.

There are quite a few smarter than average investors here with a wealth of knowledge. I always hope to learn from them.

Of course, not all are knowledgable, I know that.

But even their impressions of GE, true or false, can give you insight.



I had a good chuckle about how unreliable GE appliances had become in recent years in another post I read.



All good reading.



Thanks for everyones posts.



:sharebeer

552BB
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Re: GE - a good value?

Post by 552BB » Fri Nov 24, 2017 10:54 am

Good morning BH,



Hello whodidntante,


whodidntante wrote:
Wed Nov 22, 2017 1:55 am
Kind of a funny story. I listened to an interview with GE's CEO. He said he was not aware that a spare jet was following him on his trips because he is a 100 hour a week guy and was too focused on his work. Immediately after, he was talking about the business, and he said you have to be aware of your surroundings. I guess the irony of his own comment was lost on him. Or maybe the aluminum?


Thanks for your posts.

I liked the good and the bad from your previous post. I agree with just about all of it.

One point I would challenge though was the issue with the two jets that are talked about in the financial media and other places. You elude to it in your comment above. I see it as the difference between a CEO that is charged with the purse strings of the company and takes his/her job seriously, and someone that sees his new found job and wealth as a big piggybank. I would put Jeff Imelt in the latter camp.

His comments about 'just being too busy' to notice the two jets everywhere he went; I finds those comments disingenuous, and an attempt at being coy about his carelesssness with the company money.

This is the essence of the problem at GE as I see it.

Fast and lose with the company finances.



Now, I believe in the companys core. They are leaders in aviation, by a wide margin. Believe me, I know. I believe they are also leaders in the healthcare and power industries.

Will the new CEO fix things and right the ship. He is talking a good game plan. His initial actions have been positive. He has a record of getting costs under control at GE healthcare division. I think this is why the board selected him.



I hope he is successful.

GE was a great company, and can be a great company in the future.

The best of luck to John Flannery and GE.



Thanks to all the posters, and all your input and opinions. They are appreciated.

Keep them coming. I will respond to some other comments later.




:sharebeer

Valuethinker
Posts: 35647
Joined: Fri May 11, 2007 11:07 am

Re: GE - a good value?

Post by Valuethinker » Sat Nov 25, 2017 8:16 am

F150HD wrote:
Tue Nov 21, 2017 11:02 pm
Valuethinker wrote:
Tue Nov 21, 2017 4:49 pm
Yup.

Nortel fell from $125 to $25 and I "anchored" on that. This stock was once nearly 25% of the Canadian stock index, and the world's largest or 2nd largest telecoms equipment maker (before Alcatel-Lucent merger).

Sold it in a charity sale for $0.01 a few years later.
You didn't hang around for the Nokia conversion?
Not sure what you mean?

http://abcnews.go.com/Business/story?id=7889868&page=1

That $650m did not lead to a distribution to the shareholders in the bankrupt company, I believe. It went to satisfy creditors.

552BB
Posts: 154
Joined: Wed Mar 31, 2010 9:15 pm

Re: GE - a good value?

Post by 552BB » Sat Nov 25, 2017 11:35 am

Good morning BH,



Hello Taylor.


Taylor Larimore wrote:
Tue Nov 21, 2017 2:32 pm
WhiteMaxima wrote:
Tue Nov 21, 2017 1:22 pm
Index fund is no safer at this level than GE.
WhiteMaxima:

Diversified index funds are MUCH safer than individual stocks.

Best wishes.
Taylor


Absolutly correct.

Over 90% of my investment income goes into the indexes for this and many other reasons.



From a financal point, I have 'won the game'.

This, of course, does not mean I now will play fast and lose with my current and future income. I still direct the maximun moneys into all my tax sheltered and non-tax sheltered accounts. I save about at a 50% rate right now, and I am very happy with that savings rate.

With some of the extra, I don't mind looking for value. And when I believe that I find a great value, I will invest.



To my eye, GE seems to be a possible value in the making.

To this point, I have yet to invest in GE. I am doing more work.

Time will tell if this is a great company to invest in for the future.



Thanks for the post Taylor. :happy



:sharebeer

User avatar
nedsaid
Posts: 10214
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Re: GE - a good value?

Post by nedsaid » Sat Nov 25, 2017 12:45 pm

552BB wrote:
Tue Nov 21, 2017 10:07 am
Good morning BH,

Going on my hike this morning.

I have not searched all the posts, so if comments have already been made, I have not read them.



I am looking at GE right now. It has come down quite a bit. It has not reached a new high for more than fifteen years. Wow.

From what I can see, it is still a potentially great company.

It is a leader in Aviation, Power, and Healthcare.



Do any of you work for GE. I would love to hear your opinions and insights.

Do others have any insights. What is your opininon of the company.



Going on my hike now.

Any input into GE would be great.



Thanks guys and gals.



:sharebeer
Ah yes, General Electric. It was a "bargain" when I bought shares on February 19, 2002. It was such a good deal that I bought more on October 10, 2002. This stalwart member of the "Four Horsemen of Underperformance" has never failed to disappoint. It got close to where I bought it, whatever return I had was due to dividends. But the dividend will be cut and the stock price has cratered.
Outlined against a blue-gray November sky, the Four Horsemen rode again. In dramatic lore their names are Death, Destruction, Pestilence, and Famine. But those are aliases. Their real names are: AIG, Comtech, GE, and Pfizer.
I know, I know. I utterly butchered some of the best sportswriting of all-time. Apologies to Grantland Rice. So just as Stuhldreher, Crowley, Miller and Layden rode into eternal fame; AIG, Comtech, GE, and Pfizer will ride into infamy as underperformers. The "Four Horsemen" are sort of my "anti-index" that I keep around as a reminder not to buy stocks with inflated expectations.

Microsoft was a proud member of the "Four Horsemen" but was kicked out and replaced with Comtech Communications. Microsoft has been performing brilliantly the last 2-3 years and thus was unacceptable for an "anti-index". Only AIG will exceed GE in eternal infamy. Thus the once shining star of Jack Welch has fallen.
A fool and his money are good for business.

Fishing50
Posts: 247
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Re: GE - a good value?

Post by Fishing50 » Sun Nov 26, 2017 4:55 am

nedsaid wrote:
Sat Nov 25, 2017 12:45 pm

Ah yes, General Electric. It was a "bargain" when I bought shares on February 19, 2002. It was such a good deal that I bought more on October 10, 2002. This stalwart member of the "Four Horsemen of Underperformance" has never failed to disappoint. It got close to where I bought it, whatever return I had was due to dividends. But the dividend will be cut and the stock price has cratered.
Outlined against a blue-gray November sky, the Four Horsemen rode again. In dramatic lore their names are Death, Destruction, Pestilence, and Famine. But those are aliases. Their real names are: AIG, Comtech, GE, and Pfizer.
I know, I know. I utterly butchered some of the best sportswriting of all-time. Apologies to Grantland Rice. So just as Stuhldreher, Crowley, Miller and Layden rode into eternal fame; AIG, Comtech, GE, and Pfizer will ride into infamy as underperformers. The "Four Horsemen" are sort of my "anti-index" that I keep around as a reminder not to buy stocks with inflated expectations.

Microsoft was a proud member of the "Four Horsemen" but was kicked out and replaced with Comtech Communications. Microsoft has been performing brilliantly the last 2-3 years and thus was unacceptable for an "anti-index". Only AIG will exceed GE in eternal infamy. Thus the once shining star of Jack Welch has fallen.
I'm convinced, I'm selling GE to never look back.

My story is similar. In 2004 I bought GE because its safe dividend could fuel my future retirement. Then I doubled down when share prices began to recover in 2011. :oops: I was a little ahead of even when I thought about selling earlier this year when I read Warren Buffet sold. Now I'll take my loss against current income and buy another tax lot of S&P 500. Loss aversion is STRONG. :annoyed
It's perfectly legal, go ask the IRS, they'll say the same thing. I actually feel stupid telling you this, I'm sure you would've investigated the matter yourself. Andy Dufresne

mouses
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Re: GE - a good value?

Post by mouses » Sun Nov 26, 2017 6:03 am

My family members worked for GE for decades, and we all bought GE appliances for a long time. The quality of GE appliances has gone into the bit bucket for some years now. The formerly splendid GE Answer Center is a shadow of its former self. I feel sad for the company, but financial analysis aside, I have a hard time thinking one should invest in a company that produces junk.

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