Is GE Action a Sign of a Turn?

Jul. 9.08 | About: General Electric (GE)

GE (NYSE:GE) has been disappointing investors for many, many quarters (some would say years). After usually making earnings but never surprising to the upside, last quarter GE stubbed its corporate toe with a bad miss in earnings (see conference call transcript), and the shares have tumbled 25% since. GE is set to report again this Friday, and the stock is showing some surprising life today, up over a dollar late in the day.

Someone seems to think GE just might beat estimates of 54 cents when the report is released this week. GE has made it clear that some of its units are for sale. It is possible that a sale could be announced on Friday, or perhaps a dividend increase could be announced.

I think GE is a buy before earnings.

Disclosure: Author holds a long position in GE