Revisiting General Electric with good reason

I rattled some cages by pulling back the curtain on General Electric (NYSE: GE). I did that for good reason. The way I see it, there are going to be some significant readjustments in the markets starting early next year. The heady upward spiral we've been watching just can't go on forever. I'm sorry I have to make that call but that's the way I see it. Values have to equalize sometime. Overvaluations need to recede and correct. I'm thinking it's time now to pull some profit, take a stance, and brace yourself for a bit of a downward ride.

That's why I'm so high on GE. In my view there's no better place to shore up some funds. In fact, I have heard of GE as being referred to as a marvelous hedge of protection when times get volatile. It sure looks that way to me. In his recent statement to investors, GE chairman and CEO Jeff Immelt made his declaration of his company's strategic position clear and strong. Consistent growth, responsible investment, conservative diversification, and quality people, these are the things which Mr. Immelt banks on. This one handy quote from CEO Immelt puts GE's performance for 2006 into a nice sturdy package:

"The year is going to be a good year. Revenue will be $163 billion, up 10%. Earnings will be $20.5 billion, up 12%. Earnings per share up 15 or 16%. Cash flow at $25 billion, up 15%. Two point expansion and return on total capital and a pretty attractive segment profile. If you look across the company, really the only business that is turnaround mode is NBC Universal."