Our friend Jeff Immelt, CEO of General Electric (GE) is at it again...
Back in October, I posted about how Jeff bought about $3.3 million dollars worth of GE shares, which would have amounted to a commitment of about $9,150 for someone who earns $50,000 per year. Perhaps a sign that he still feels the global conglomerate is undervalued, Jeff purchased an additional 90,000 shares of GE for about $3.0 Million dollars on February 29, 2008.
I agree with Mr.Immelt, as I'm interested in adding to GE at these levels as well. GE is currently trading at a P/E of 15.3, which is near it's 10 year low. The company has also grown it's profit margin steadily over the past 10 years, and grown it's return on equity over the last 4 years. I like GE's global presence, and their environmental focus in developing and developed markets. GE is currently yielding 3.7%, and is trading near a 52 week low. If this company can produce the 10%+ earnings growth in 2008 and beyond, this is looking like a great entry point. Given the strength of the Canadian dollar, combined with GE's valuation and outlook, I may add to my position soon.
GE already makes up about 6% of my portfolio. You can always view my portfolio holdings and their weight in my portfolio on the panel on the right of the screen.