GE: A Blue Chip Bargain

General Electric Company (NYSE:GE) is seeing dramatic trading volume today. After a quick bump this morning the share price has descended below its close on Friday of $21.50.

This kind of action is not terribly surprising when you consider GE’s third quarter results (ending September 30)…

As anticipated, revenues came in at $4.5 billion — that’s 12% down from Q3 2007. Net income, in comparison to last year, was down 22%.

Of particular note:

• The company’s finance arm, GE Capital experienced a 33% decline in profits.
• The consumer and industrial unit was hit by an 81.7% decrease in profits.
• On a positive note, GE’s Energy Infrastructure and NBC Universal businesses saw a 31% increase in revenue and a profit of 10%, respectively.

Investors are clearly conflicted.

But this is GE we’re talking about… at practically half it’s 52-week high of $42.09.

If you are in a position to buy General Electric Company (NYSE:GE), you should at or under $22 a share. I expect to see at least 10% gains by mid-December.

Disclosure: none

Comments

[sloane:]

Dr. Tantillo, who has a marketing blog , did a post at the end of last week that expressed his confidence in GE and its brand, bringing up the fact that GE was able to weather the Depression and has proved adept at adapting to market conditions and meeting its Target Market's needs.

He does however, wonder whether GE Capital fits with the GE brand's 'core essentials' - "Should GE Capital ever have been part of this grand brand to begin with?  Is it 'Imagination at Work,' or the kind of brand extension that has little to do with a company’s core?"

Full post

2008 Oct 15 07:45 PM

[sloane:]

Dr. Tantillo, who has a marketing/brand blog ( blog.marketingdoctor.t...) did a post at the end of last week that expressed his confidence in GE and its brand, bringing up the fact that GE was able to weather the Depression and has proved adept at adapting to market conditions and meeting its Target Market's needs.

He does however, wonder whether GE Capital fits with the GE brand's 'core essentials' - "Should GE Capital ever have been part of this grand brand to begin with?  Is it 'Imagination at Work,' or the kind of brand extension that has little to do with a company’s core?"

Full post: blog.marketingdoctor.t...

2008 Oct 15 07:46 PM