General Electric (GE) announced earnings this week and the company’s earnings show that GE is on the right track. Total revenue was up 6% as the company made over $38 billion dollars this past quarter. Earnings were up over 50% as the industrial giant crushed Wall Street estimates. Things were even positive at GE Capital as the division earned nearly $2 billion dollars in net income. That is just the start of the good news.
Dividend Stocks: General Electric
March 31, 2011 By 4 Comments
This is the fourth part in my series on dividend investing. Today, I would like to look at one of the oldest companies in the United States. The company is involved in just about every facet of the United States economy. The company generates revenue from industrial production, healthcare, financial services, and product sales. It’s one of the largest companies in the world with a market cap over $200 billion dollars and a good dividend play.
General Electric Stock Analysis
July 23, 2010 By Leave a Comment
General Electric (NYSE: GE) has been dead money for some time now. The stock is down nearly $40 and down 72.5% over the last 10 years. The company finally reported positive quarterly earnings after two and a half years of declining earnings. The company earned $3.3 billion dollars (30 cents per share) as second quarter earnings increased 15%.
During the most recent conference call, CEO Jeff Immelt noted that “Equipment orders increased 17%, including 20% growth in the Energy Infrastructure segment and 14% at Technology Infrastructure. Oil & Gas and Healthcare orders were particular bright spots and helped hold total company orders backlog roughly flat, excluding the impact of foreign exchange.”
4 Large Cap Stocks To Buy Now
July 5, 2010 By Leave a Comment
The current market decline has created a great opportunity for value investors. Long term investors do not have to chase speculative growth names because the market has put a lot of large cap U.S. companies on sale. There are a number of household names trading at less than 10 times earnings. Listed below are 4 companies that are selling at a discount to their intrinsic value.
Intel Corporation (INTC)
The recent Dow drop has turned Intel into an accidental high yielder. Intel trades just under 10 times next year’s earnings and has a dividend yield of 3.3%. Intel has a tremendous balance sheet as many tech bellwethers do. Intel has over $16 billion dollars in cash and just $2.5 billion dollars in debt. Intel is a great buy with tremendous free cash flow and an 11.5% earnings growth rate.
Corning (GLW)
Corning is probably the cheapest stock on the list. Shares trade at just 8 times next year’s earnings and the company has a projected growth rate of 11.6% over the next 5 years. Corning has a fortified balance sheet with almost $4 billion in cash and approximately $2 billion dollars in debt. Corning is a cash cow that generates significant operating cash flow. Shares trade just above 1.5 times book value.
Bank of America (BAC)
The nation’s most recognizable bank is trading at just 7 times next year’s earnings estimate. Bank of America has the earnings power to overcome any significant losses in its loan portfolio. The lax financial reform bill shows that the government is still backing the big banks. At just $13.70 a share, Bank of America is a buy.
General Electric (GE)
General Electric has fallen to buy territory again at under $14 a share. Long term investors are getting a great chance to buy a global franchise that trades at just 10 times forward earnings. Even with the dividend cut last year, GE is still yielding almost 3%.
Disclosure: I do own shares of Bank of America and General Electric.
Expecting a Decline in The Dow
May 23, 2009 By Leave a Comment
Bought shares of ProShares UltraShort Dow 30 (DXD) for my short term trading account. I now have 4 different ETF’s in my trading account that are for a short term pullback in stock prices. I bought these shares just below $51.
As stated before I am also taking some profits in General Electric. I probably should sell some Wells but that is one of my core long term holdings. If it drops as I expect most financial to continue to do I will use that opportunity to accumulate more shares. One of the main reasons that I believe that we are due for a major pullback is because people are not investing based on fundamentals but on momentum. When people see the market decrease they become afraid and that selling begets more selling.
My Mistake With GE
March 27, 2009 By Leave a Comment
As stated previously I currently own a couple thousand shares of General Electric (GE). I had been buying the stock between $7 and $13 per share. My plan was to buy thousands of shares when GE hit the $5 range. A few weeks ago the stock dropped below $6 per share and the Dow was down to 6,500. When this happened and I saw GE at $5.90 I got worried. I started thinking, what will stop GE from going to 4 dollars or zero? I didn’t buy any shares when GE hits its 52 week low of $5.87. Over the past three weeks GE has almost doubled and is trading near $11. I missed a tremendous opportunity to make a hefty profit all because I allowed emotions to interfere with my investing thesis. I knew that while GE Capital is struggling that GE Industrial has a value of approximately $12 per share alone. Needless to say I learned a valuable lesson: When all else fails, stick to the plan!
GE Slashes Its Dividend
February 27, 2009 By Leave a Comment
General Electric (GE) is cutting its dividend for the first time since 1940 from $1.24 per share to .40 per share. GE is cutting its dividend 68% after numerous comments from GE about how the dividend was safe through all of 2009. The stock has since slumped to $8.50 per share. General Electric is trying to save about 9 billion dollars through its dividend cut. The stock was already trading at a level that seemed to expect a dividend cut. GE will probably have a huge loss from GE Capital when earnings are announced on April 17th. CNBC continues to defend Immeltand is describing the dividend cut as a wise move. The truth is that GE is going to lose its AAA credit rating and the dividend will likely be slashed further. According to some analysts, GE Capital is worthless due to massive international mortgage losses. Based on the company’s performance over the last 7 years; Immelt should be let go.
Interesting Week
February 22, 2009 By Leave a Comment
This should be an interesting week. The Dow Jones is at 7300 which is its lowest level since the mid 90′s. Financial stocks as a group are beaten down and the question is, Can they continue to go lower? The government is reportedly thinking of taking a larger stake in Citigroup. The government is expected to announce a plan that will stabilize the banking sector this week.
I will also be keeping an eye on automobile company stocks. General Motor’s market cap is down to 1 billion and the stock is selling for $1.77 a share. Ford may be selling for only $1.58 a share but the company seems to be in better shape than GM. Ford has not yet asked for any government funding and is gaining marker share from GM and Chrysler. Since Ford has not gotten any loans from the government, the company will have greater access to loans than its competitors.
How much lower can these stocks go? Dell is trading for $8 a share and the company announces earnings this week. Dow Chemical is down to $8 a share. At the rate that the stock is dropping the company may be insolvent before it can complete the Rohm & Haas deal. General Electric at $9 is at its lowest levels in 14 years. Can GE drop to $5?
GE Buy
February 9, 2009 By Leave a Comment
Bought 190 more shares of General Electric (GE) at $12.68. That brings my total to 1100 so far.
