Value Trade General Electric (GE)
Posted Monday, September 8th, 2008 10:59 AM in DailyRead, YouDecide by ILive-Dave
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Well that’s what happens when the economic news is worse than expected. The huge drop of last week did present some good buying opportunities however. If you are a value investor, these are your favorite days as most stocks have found themselves caught in a trading range. If you buy a stock with good fundamentals and has gotten beat down with the rest of the market, buy it. I put a buy limit order on General Electric (GE) at $28.20. Granted I missed the lows, however I didn’t want to miss it on the upside. At that price, the stock is yielding about 4.5%. I have complete confidence in the stock to rebound nicely on the next market upturn. Look back to February when Bear Stearns collapsed, GE was trading at $36. About 50% of their portfolio is made up of financials, and they are already ahead of the curb as they had sold off their bad holdings earlier in the year. I will sleep easy at night, I will wait for a move to around $29+, and if it goes down I will sit back and collect my 4.5%.





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3 Responses to “Value Trade General Electric (GE)”

  1. ILive-Dave Says:

    UPDATE: Sold my position out today at $29.10.

    Until the next value….

Trackbacks

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