Clark

3 Comments

    • ON: Thu May 1st 22:28 PM
      Commented on:
      Blood in the Streets: Buy and Hold GE, For Now
      GE is VERY well managed. I used to work there. In some ways its 'over' managed.. but they do get every ounce out of all there employee's the've got. They've got that down to a Science!

      I wouldn't be surprised to get an upward revision in earnings in Q2 as Immelt said they had a few big deals 'push' into Q2 at the end of Q1.. and .. if we all recall.. they were not able to sell some paper at the end of Q1 given Bear Sterns. I find these explainations credable. I find Immelt reaffirming guidence in late March increadable however.. and he might have been better to not say anything. I think it could stem from the fact that he came into the GE Corporate side of the shop via the industrial businesses and not from GE Capital. I suspect that WONT happen again.. and they will get Neil or some other key GE Capital officer guy in the main office fast. (that and beat on him for missing earnings).

      Keep in mind, while GE Capital was a 'weakness' for GE.. overall they do a lot of things for GE year in and year out.. and is critical to maximize financing and placement of GE products. (They finance there own stuff don't you know too). The leases they do provide 'depreciation' to the main company sheltering there 'real' earnings significantly from government taxation. They can take advantage of global currency markets, and they have fingers into almost every major industry in the world. If it happens.. GE knows about it.. and the power of 'real' information is invaluable in todays global markets. It much like a spider on a web.. something tingles.. and they know about it.

      I would buy this stock ANYTIME below 35. The reinvesting of dividends and EXTREME assets they have on the books (book value) make this company just about bulletproof to inflation as it can be (as the assets would also 'inflate'). Reinvestment will make you rich. It just so happens the stock has been on 'sale' the last few weeks.

      Dial this one in. Its a LONG TERM HOLD and LONG TERM BUY anytime you see the P/E here. Worst case scenario.. which I don't even think is reality.. is they start spinning stuff off like Jet Engines.. or just taking these 'subsidiaries' public.. how wouldn't you be a multimillionaire in that case. They own so many industries as the 'A' player.. you would be insane to think you haven't bought something of real value and cash generating. Remember.. they made OVER $4.3 BILLION in net income in Q1. $4.3 Billion. Thats a lot of cash... oh yea.. and they bought a $1 Billion in stock. Thats almost as many dollars as McDonalds has served hamburgers over 40 years.. and they did it in a QUARTER!!!

      Accumulate GE while you can. When its at 80 and raising its dividend you'll be happy you did.

      Todd



      View article »
    • ON: Tue Nov 13th 01:03 AM
      Commented on:
      Taking the Plunge with Precision Drilling
      Great article. Company is well run.. and the earnings are solid. Company is very well positioned to capitalize on ANY upside in oil prices as Nat Gas WILL pop as soon as we get a cold snap. Q1 and Q4 are there best quarters.
      View article »
    • ON: Tue Nov 13th 01:03 AM
      Commented on:
      Taking the Plunge with Precision Drilling
      Great article. Company is well run.. and the earnings are solid. Company is very well positioned to capitalize on ANY upside in oil prices as Nat Gas WILL pop as soon as we get a cold snap. Q1 and Q4 are there best quarters.
      View article »
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»