Seeking Alpha
Profile| Send Message|
( followers)

A 10yr chart of General Electric (NYSE:GE) reveals the company has seen the $20 level only three other times in previous cycles, and each time quickly bouncing from it (click to enlarge):

The image “http://static.seekingalpha.com/uploads/2008/10/6/saupload_sc_2.png” cannot be displayed, because it contains errors.

In the late 90s, GE just touched 20 and quickly bounced:

http://static.seekingalpha.com/uploads/2008/10/6/saupload_sc.png

In the previous bear market from 2002, GE quickly bounced from 19 twice:

http://static.seekingalpha.com/uploads/2008/10/6/saupload_sc_1.png

Currently GE is at a situation where a quick breach of 20 will most likely take place again…

http://static.seekingalpha.com/uploads/2008/10/6/saupload_sc_3.png

GE Capital is a drag on earnings at the moment, and if/when credit markets ease up, the cost of borrowning will reduce and benefit GE. The industrial side may see a slowdown due to the global slow down, but still, GE is very attractive here. It is a cheap stock, and as good as it gets with respect to a strong company that is yielding +5% as you wait for things to improve.

Disclosure: No positions

Source: GE Looks Very Attractive Here