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General Electric Company Message Board

  • wall_st_casino wall_st_casino Jan 1, 2007 3:30 PM Flag

    GE is a bank with a 22 P/E

    A finance company masquerading as some kind of a growth manufacturing company. The choices for management are to either make massive, long-delayed investment in shoring up the industrial businesses which are held together with duct tape and baling wire after being plundered then neglected for twenty years during the Welch era, thereby maintaining the manufacturing illusion, or shedding them for pennies on the dollar, and accepting the P/E of a financial institution. Neither seems attractive.

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    • On one level your perspective is correct but there is another that many use to find GE an attractive investment. I regard GE as an alternative to a fixed income allocation. Over time GE will grow and produce an income stream superior to a bond and I think your description of it as primarily as a bank/insurance company is overdrawn. The performance of GE over time has been good. If you look at the stock price rather than the finacials of the business you will find problems with most large U.S. companies because the valuations have been cut in half since 1999 for the many. My basis is about $25 having acquired my holdings at the lows a couple of years ago. I didn't hold it when it was priced in the $50s and would have sold it, had I owned it then, but not today. GE could easily move up to the $40s and would only be trading at 20 times anticipated 2007 earnings. That isn't interesting for those looking for a trading vehicle so you should move to one pleasing to you. WW

    • You have made this same post several times and are obviously selling this stock short. So, I will ask this simple question: Are you referring to the manufacturing of locomotives, wind turbines, medical products, or the old fashioned appliance and plastics groups which might be sold off? I am comfortable with the new line of manufactured products, but would like to see the others sold off. The balance of the company that you call a "bank" is fine with me too. Look at the investment houses and private equity firms. They make tons of cash. This stock will go up several points in the next month or so. Watch it.

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