General Electric: The Good, The Bad And The Ugly

Mar. 28, 2018 3:29 AM ETGeneral Electric Company (GE)41 Comments
WG Investment Research profile picture
WG Investment Research


  • Will Warren Buffet save the day, again?
  • I will highlight three things that investors should be closely monitoring in 2018 - The Good, The Bad, The Ugly.
  • I plan to stay long General Electric.

General Electric (NYSE:GE) is a beaten-up industrial conglomerate that cannot seem to find its footing (and this is putting it lightly), but GE shares jump by over 4% on rumors that Warren Buffett may be interested in initiating a stake in the company.

Source: Nasdaq

It is hard to cheer for a 4% bump when the company's stock is trailing the performance of the S&P 500 by a wide margin over the last year but anything counts at this point in time.

In my opinion, a Buffett investment would go a long way when it comes to investor sentiment. A Buffett buy would be would just what the doctor ordered, but let's not get ahead of ourselves - i.e., investors should not go out and buy GE shares tomorrow on this news, of course, in my opinion. Also, let's remember that Mr. Buffett recently told CNBC's Becky Quick that he would buy GE at the "right number" so it is not like the rumors are coming out of left field.

I am [unfortunately] a long-time GE bull so I am obviously encouraged about the Buffett news (when there is smoke, there is usually fire) but, in my opinion, there are other reasons to like the stock around the $13 per share range. To consider GE's current state, I will focus on what I am calling; The Good, The Bad and The Ugly.

The Good - Improving Business Environment

The company's troubles have been well-documented here on Seeking Alpha, and I will get to some of them later in this article, but it is important to note that GE is operating in an environment that has promising business prospects. To put this into context, FactSet recently released several reports that supports the thesis that the global economy, obviously including the U.S., should have a strong start to

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This article was written by

WG Investment Research profile picture
Our President and CIO is a CPA with experience in public accounting and the financial services industry. He earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007. He is also a Level III CFA candidate. He has been intrigued by the market from the start. Over the years, he has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of our articles will be about the investments that we plan to hold for at least 3 to 5 years, as long as the company's story does not change. As a Seeking Alpha contributor, our main goal is to write about the companies that are key to our portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.Please visit our website for more information about W.G. Investment Research LLC.

Disclosure: I am/we are long GE. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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