Tuesday, March 4, 2008

another drop in the bucket - GE

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.


----t h rive---- said...

Good to hear, considering I just bought a handful to add to my RSP. Your thoughts were my sentiment as well.

Also, looks like your WAG won't do so bad in the long run - I know you love 'em.

dividend growth said...

I am a big fan of GE myself. The company has managed to double its dividends every 6 years since the 1970's..

MG said...

I think GE looks attractive given the current economic environment and global trends. Infrastructure spending is needed everywhere you look, and industrial technology should allow less dependance on oil. Also, for such a consistent dividend and earnings grower the stock is reasonable value. I'm not sure whether they should sell off NBC or not, but the market wants them to.

Dividends4Life said...

MG: Ditto here. I still have GE on my buy list.

Best Wishes,