The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Duke03 on January 22, 2018, 08:27:25 PM
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I was wondering if anyone has been watching GE stock lately. I mostly buy mutual funds, but when I do buy single stocks I like old American Dinosaur Companies. By looking at the stock market GE is the only company that is basically on sale right now. Granted I know they have some issues mostly as a clear path going forward, but they have billions on top of billions of pent of value. The spin off of GE oil and gas will bring in at least 20 billion starting in 2019 and will probably be much more as oil is recovering and the value of the stock they hold due to this spin off will increase. If they start selling off parts of the company that's just more cash. The stock has been trading in the 16.xx range but was almost at $20 two weeks ago. A year ago it was $30. Anyways I'm not looking to do anything crazy but might through 5k of my play money at it and see what it does.
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I impulsively put in some of my robinhood play money back in November at $19.30, but was pretty happy to relinquish that when it rebounded to $19.30 two weeks ago!
Will continue to passively monitor as I am in one of their core industries but the GE Capital Debt and the pension shortfall are considerable.
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I've made two buys and hold 513 shares now with a cost basis of about 17.50 may buy more sub 15 dollars.
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GE is one of those old school companies that will see a huge change to its market. With Asia challenging the cost and startups challenging the innovation market it will be interresting to see if they can change with the times or get outpaced. Like Oil and Gas they may have to get rid of other segments where they are no longer competative. In 10 years I expect it to be either a completely different company or a company with large losses.
They have a lot of great things going for them with their IOT solutions, but it remains to be seen if it will be enough. Often these industrial companies have trouble when shifting to software. Then the speed of innovation will have to increase many times just to keep up. More than ever visionary top level management will be critical.
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GE is one of those old school companies that will see a huge change to its market. With Asia challenging the cost and startups challenging the innovation market it will be interresting to see if they can change with the times or get outpaced. Like Oil and Gas they may have to get rid of other segments where they are no longer competative. In 10 years I expect it to be either a completely different company or a company with large losses.
They have a lot of great things going for them with their IOT solutions, but it remains to be seen if it will be enough. Often these industrial companies have trouble when shifting to software. Then the speed of innovation will have to increase many times just to keep up. More than ever visionary top level management will be critical.
+1
GE isn't going to rebound anytime soon.
If you want to speculate, why not buy some bio-pharmas? There is lots of innovation in cancer research going on now. Easy money to be made or lost now.
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I don't see a lot of upside in GE. Good luck catching that falling knife ;)
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Also take note of the $31 Billion Underfunded retirement plan.
https://www.google.com/search?q=GE+unfunded+retirement+&ie=utf-8&oe=utf-8&client=firefox-b-1
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There is a floor where investors will start buying. That could spike a trend upward once all the bad news is priced in.
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I impulsively put in some of my robinhood play money back in November at $19.30, but was pretty happy to relinquish that when it rebounded to $19.30 two weeks ago!
Will continue to passively monitor as I am in one of their core industries but the GE Capital Debt and the pension shortfall are considerable.
All the mismanagement of these defined benefits within both the private sector and within government organizations has turned into such a cluster. What blows my mind, is that the DOW is at ~26000.. and we have new pension plans every day that are reaching critical and declining status. What happens when the market actually has a hiccup?
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I have no idea on GE.
Yeah, it's fallen a lot, but the company is a mess and has a ton of debt. I don't consider 16x forward earnings to quite be a fire sale either.
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2 very simple questions have kept me from buying individual stocks.
1. Is it riskier than VTSAX? Well of course, it's an individual stock, not 3600. In this case it also has other problems.
2. Do I have reason to believe it will grow faster than VTSAX over the coming years? Not really.
Higher risk, no reason to expect higher return. Sounds like a bad idea.