Caduceus wrote: ↑
Tue Nov 14, 2017 4:37 pm
It's interesting that there's so much discussion about GE being a good or bad stock without any accounting language at all. Everyone's speaking at such a high level of abstraction about GE products and industries, etc. Has anyone actually done a deep dive into GE's financial statements? GE's pension assumptions? It's off-balance sheet liabilities?
Deep dive, no. I've looked at high level numbers to make sure they make some sense. At the very highest level, they were paying out a dividend slightly higher than their net income. The cut in the dividend fixes that at least. Other initiatives at least seem reasonable as far plans to re-examine ways to reduce costs and focus spending on the segments likely to return the most revenue, but the details of those initiatives are a bit hazy so far, and not easy to really quantify their future results.
Anyways, I mentioned before my plan is to continue dollar cost averaging at least mostly out of GE, one of three remaining individual stocks I own. Even before this thread, I was keenly aware of the point nisiprius wanted to make when he started the thread.
Interestingly, when I have new cash to invest, it's very easy for me to put it directly into my index funds without reservations. When it comes to actually selling off another chunk of my GE to move it into index funds, however, it's difficult to accept that regardless of the fact that it was $30+ a share very recently and I think it's oversold right now, I don't truly know where it will go from here.
Selling off via DCA is supposed to be an easy way around that uncertainty, but since I didn't mentally commit to a specific schedule to follow, the temptation to time my incremental sales is hard to overcome. Not to mention a little voice in my head also wants to convince me this is actually a good time to buy.