Posts Tagged ‘GE’

Anyone else invest in GE stock?

Friday, February 6th, 2009

GE is down to under $11. I bought $1000 worth when it was $19 thinking I’d double my money; however, it looks to have backfired on me. I’m confident that it will recover, but it gets quite depressing seeing you kids’ first car fund (about 10 years off) dwindle away. I’m considering dumping another $1K into it.

Answer: Although the CEO says the dividend is safe, and we’re currently looking at 11% or so yield, I think there’s a bit too much risk w/ GE’s financial business. It’s not out of the realm of possibility that GE will need a bailout that will crush shareholders. And given the discount that some stocks are selling at I really think there are much better buys out there.

I think CSCO is a fantastic company that is taking advantage of the recession nicely to build out their business cheaply. They are a global leader in communications which will only become more integral in the upcoming years. They have some serious growth potential and are a safe stock given their phenomenal balance sheet and huge cash flow.

FSLR is has the best solar technology on the market. They have a great balance sheet and will most likely achieve price-parity first. I really think this one is going to the moon and now is a great time to get in.

Lastly, Alcoa (AA) has gotten absolutely crushed thanks to a perfect storm of plunging commodoties prices and a massive drop of in their business. The stock has gotten absolutely pummeled — just check out a 10 year chart. They will be back and if you can wait it out, you should see a phenomenal return on this.

So those are just 3 quick ones that I really like for the long term. In order of most potential, Id rank them as: FSLR, CSCO, AA. In terms of safest, Id rank them CSCO, AA, FSLR.