General Electric: Defensive Value

Looking for a value play that pays a 3,7% dividend and is poised for double digit growth with limited downside? Well, you might what to read on…

It’s in times like these that investors have to turn to companies with solid track records, strong management and a clear strategy: General Electric (GE) delivers on all these requirements. GE’s financial health is amongst the absolute best: a AAA credit rating. Furthermore, they shut down WMC Mortgage late last year and therefore have practically no exposure in the subprime market.

We completely disagree with continued talk about how Jack Welch squeezed everything out of GE and that Jeff Immelt has little room to maneuver. We think that Immelt has a clear vision and is executing his strategy in difficult times and that he will continue to deliver double digit growth. GE is a much stronger company now than it was under Welch and it’s just a matter of time before this is reflected in the share price, especially through their expansion in emerging markets.

Here is a look at other famous investors that belive in GE and recent insider movements taken from gurufocus.com - please note recent buys by Jeff Immelt, 90,000 shares on29/02/2008.

Disclosure: none