GE: Lose AAA Rating or Cut Dividend [View article]
You make many good points. I own all three GE, Alstom (former ABB), and SI, and have added to all when the market tanked in November. I am looking to add more, but at the right value.
GE in the teens is cheap, despite the ugly baggage in broadcasting & finance. I would not bank on continued and unending taxpayer support for the dividend and AAA rating, as the political winds are fickle. Alstom (AOMFF) also has precarious French govt. support, which may change with the whims of the EU competition regulators, and additionally their technology is much weaker than GE's. SI is a great company, but stock is pretty expensive in the $70's. I added to it @ $45 some weeks ago, and feel that at $40-$48 it makes good sense.
Note too that neither SI or AOMFF make aircraft engines, and this gives GE a big edge when global economy rebounds, as well as access to military contracts. For the long term (>5 trs), I think GE is likely to outperform the others if you buy it in the mid-teens, that is unless SI returns to the 40's.
On Jan 11 05:00 PM jegan ;-) wrote:
> mdub..Aside from the excessive use of CAPS, I agree with Diegojames... > (Also agree with the leek pie and salmon)... GE has too many divisions > that are subject to teh whims of our present economic collapse. And > the financial guarantee only really applies to GMAC, just part of > GE. What's the near-term upside for GE? The poor quality appliance > division? Aerospace? Not the reconstituted finance division! That > really only leaves the industrials. And maybe in a year that might > start to work if our new President can actually get the infrastructure > play moving, or if China gets back in gear.... Remember that these > **big** projects have a lot of hurdles, EPA, lawsuits, contracts, > engineering etc... and they don;t turn on a dime. Having said that, > GE does seem to have activity in China now that might ramp up. The > question there is, why buy GE and drag around everything else, when > you can buy ABB or SI which are already working well and don't have > the rest of the business to drag along. > > jegan ;-)
GE: Lose AAA Rating or Cut Dividend [View article]
GE in the teens is cheap, despite the ugly baggage in broadcasting & finance. I would not bank on continued and unending taxpayer support for the dividend and AAA rating, as the political winds are fickle. Alstom (AOMFF) also has precarious French govt. support, which may change with the whims of the EU competition regulators, and additionally their technology is much weaker than GE's. SI is a great company, but stock is pretty expensive in the $70's. I added to it @ $45 some weeks ago, and feel that at $40-$48 it makes good sense.
Note too that neither SI or AOMFF make aircraft engines, and this gives GE a big edge when global economy rebounds, as well as access to military contracts. For the long term (>5 trs), I think GE is likely to outperform the others if you buy it in the mid-teens, that is unless SI returns to the 40's.
On Jan 11 05:00 PM jegan ;-) wrote:
> mdub..Aside from the excessive use of CAPS, I agree with Diegojames...
> (Also agree with the leek pie and salmon)... GE has too many divisions
> that are subject to teh whims of our present economic collapse. And
> the financial guarantee only really applies to GMAC, just part of
> GE. What's the near-term upside for GE? The poor quality appliance
> division? Aerospace? Not the reconstituted finance division! That
> really only leaves the industrials. And maybe in a year that might
> start to work if our new President can actually get the infrastructure
> play moving, or if China gets back in gear.... Remember that these
> **big** projects have a lot of hurdles, EPA, lawsuits, contracts,
> engineering etc... and they don;t turn on a dime. Having said that,
> GE does seem to have activity in China now that might ramp up. The
> question there is, why buy GE and drag around everything else, when
> you can buy ABB or SI which are already working well and don't have
> the rest of the business to drag along.
>
> jegan ;-)