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Regarded Solutions
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Retired, living in South Florida. We have been investing for 40 years and lean towards a conservative approach with dividend paying blue chips, as well as a small amount of short term risk plays. We hedge with option strategies, and watch trends. We have always handled our own portfolio, and... More
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  • My General Electric Article Has Created "Buzz" 5 comments
    Dec 16, 2012 10:44 AM

    Last week I wrote a fairly in depth article about GE and gave my opinion on why I felt a double in the share price could occur in 12-18 months.

    Here is the article: General Electric: A Sleeping Giant Poised To Double

    It was not more than a day or two that a series of articles written by my colleagues popped up to offer their own opinions. Each have been very well written and actually got me to re-visit my own opinion.

    Basically, I believe that the growth of GE will come from emerging markets and the positioning that GE has developed within them. This is a forward looking opinion, and the current fundamentals could never show that.

    My thesis is that as the global economies recover, and the emerging markets needs become greater, then the current fundamentals might not be quite as important as other SA authors make them out to be.

    That being said, I will agree that I could be overly optimistic within my time frame of 12-18 months. I should not have locked myself into that time frame although i do believe the stock will double.

    Currently, I am looking into the emerging markets growth trends and will adjust my opinion to 24-36 months for that double.

    I stand by my convictions however, that GE is poised for stronger than expected growth, and even though the share price has climbed by 50% since I first suggested it, more surprises are likely in store for GE shareholders.

    Re-read my article and replace the 12-18 months with 24-36 months. I believe my thesis is logical, reasonable and achievable.

    RS

    Disclosure: I am long GE.

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Comments (5)
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  • RS, if GE gains 15% annually, I'll be a happy camper.
    16 Dec 2012, 12:13 PM Reply Like
  • Built a substantial core position in GE around $22 a while back on your advice. Let the wind turbines roar and generate some tailwinds.
    Need some.
    I'll take $42 in 1-3.
    16 Dec 2012, 11:14 PM Reply Like
  • i think some guy just wrote another one about your article RS... I think thats a record or something! lol
    17 Dec 2012, 02:25 PM Reply Like
  • Author’s reply » Damn maybe I should have written part 2!!!! LOL
    17 Dec 2012, 03:44 PM Reply Like
  • Obviously, there are readers that simply hate GE because of the CEO's involvement with the current administration. Personal issues with Obama seem to cloud a lot of people's judgment on basic fundamental analysis of a company. Any company. They hate Obama, so GE is a failure. Period. Say what???

     

    Do I think emerging markets are going to rally in the next couple of years? Yes. Do I think the general world economy is going to move closer to sustained growth? Yes. Do I think GE Capital is back on track and will continue to return revenue to the parent? Yes. Finally, do I think GE is a value buy around $20-21 a share with minimal downside? Absolutely. Therefore, those are all reasons I want to own GE - regardless of who is living in the white house.

     

    When attempting to make money in equities, I really don't care who the President is. Letting personal animosities cloud your investing judgment just seems silly to me.
    19 Dec 2012, 11:46 PM Reply Like
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