AJ, Washington DC

Blood in the Streets: Buy and Hold GE, For Now

As long as there are stocks that respond to trading momentum with big moves, resulting in instant gains (or loss, for that matter), GE will continue to be ignored by the market. The intrinsic value of its businesses, especially in energy and infrastructure is undervalued, given that most part of the worlds needs new or replacement infrastructure to keep up with their growth. No one has really been paying attention to their R&D, which has been making large investments in nanotechnology. GE's financial divisions may seem to be the downside, but it gives them access to cheap money since they are able to borrow at bank rates across the globe, wherever the are able to do business - this in turn allows them to provide their customers with attractive financing over a longer term. Its their domestic exposure to sub-prime and other instruments that puts them at a disadvantage, but its to the order of 2-3 billion, from their current Quarterly statement. They'll soon work through that... I agree that their stock doesnt seem to be doing anything, but in a sea of volatility, a small isle of relative calm is a welcome relief. GE has been punished enough for Mr. Immelts "lack of guidance", but he has learnt what it means to be the voice of GE in no uncertain terms. I don't think he will make THAT mistake again. All that said, this is a stock to keep accumulating - If you have a 10-20 year time frame, its the stock buy and forget, and when the dividends come in, reinvest in more shares. As one of the previous commentator said, its a stock that your grandchildren will be glad that you bought.
cheers,
Go Long and be Prosper!