GE - General Electric

[Uccmal]

Under Welch, every Quarter GE smoothed the earnings by moving (buying/selling) assets between GEC and off shore and/or off balance sheet entities.  I dont have much respect for Jack Welch.  The early Jack Welch was okay but later on he got too much hubris and arrogance.  The company has had 11 years of recovery from the Welch years.  I think they are finally getting their groove back. 

If GM can come back from the dead then I am fairly confident that GE can rebound from mediocrity enough to at least double my investment on the Leaps.

[Myth465]

How has he managed to retain such a great reputation?

[rogermunibond]

Largely via hagiography.

He sold his name to for-profit Chancellor University. 

http://www.jwmi.com/

[twacowfca]

Largely via hagiography.

He sold his name to for-profit Chancellor University. 

http://www.jwmi.com/

Hagiography! That's a good one!   

[dealraker]

"GE doesn't have the magic it had when Jack Welch was in charge, but much of his wisdom is institutionalized in the corporate culture."

Given the insight on this board that comment to me is probably the comment I would have never expected to see.

[jeffmori7]

Is there anyone still invested in GE? Uccmal, did you keep your LEAP position?

I bought the common during the financial crisis in 2009, but now, I'm not really confident about the future growth. I think it's a pretty stable core holding, with a nice dividend. We can expect more buyback and a dividend increase in the future, particularly with the financial division starting to repay a large dividend.

GE tend to dominate the markets in which it is present, but with a company of this size, what is the growth we can expect in the future?

Any thoughts about this one, which seems fairly valued at the moment? It is also the strike price for the Buffett warrants if I remeber well.

[Uccmal]

Hi Jeff, I sold the last of my leaps in August during the run to $21.00.  I needed the cash for AIG warrants where I see much more upside.  The GE Leaps were all 2013s and were losing their time value quickly so I had to be opportunistic and sell on highs. 

I think GE will do well going forward but it will be a long slow climb.  I had probably overestimated their speed of growth or return to growth.  I think its fairly valued.  I might buy back in with 2015 Leaps if it pulls back sub 18, or so. 

[jeffmori7]

Thanks Al for your answer. It is exactly to increase my position in Aig that I'm considering selling GE.

[berkshiremystery]

Thanks Al for your answer. It is exactly to increase my position in Aig that I'm considering selling GE.

There you have some free research page of GE @ ValueLine,... it's from the 30 free DJI stocks.
http://www3.valueline.com/dow30/f3807.pdf

[jeffmori7]

Yes I have seen that..ValueLine are very bullish on GE with an expected annualized return between 15 to 25% for the next 5 years..

It could happen, but you have to believe in these optimistic growth in the sales projection.