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User 283977 » Comments » BIDU

  • Fast Money Recap: 100 Trades for 100 Days (1/13/09) [View article]
    GE:
    I have been getting increasingly uncomfortable with GE and the financial part of their business model. I bought GE as a long term investment and was attracted to their dividend. GE seems to be well positioned for an infrastructure play, but I am very uncomfortable with their seemingly broad financial market exposure. Their dividend yield is currently at 17%. EPS is $2.02 while the dividend is .61 per share per quarter.

    There was another article on SA that made the point that if GE maintains their dividend, its likely they will loose their AAA rating. There is logic in that, and if push comes to shove, their board should select the AAA rating over maintaining an accidental dividend yield of 17%. I still think GE is a good infrastructure play, and whatever their dividend ends up as, its still going to be good.

    However, I agree with Guy Adami, GE is too heavy on the financial side with its associated unknown risks. I sold my GE position for alternative infrastructure plays.
    Jan 14 11:15 am |Rating: +2 0 |Link to Comment
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