So -- General Electric (NYSE: GE) comes out with an awful earnings report, its stock is down over 12%, and the market as a whole is also behaving badly. What did I decide to do? I just had to buy some GE stock for my trading portfolio.
I own shares of GE in a long-term portfolio, but I've been keeping my eye on the stock as a potential short-term trading vehicle as well -- why not? If I make the wrong move and get stuck with it for a while, it's obviously not going to bother me, since I retain a long-term thesis on the company (well, it will bother me a little, since I'm expecting to perhaps harvest a quick gain on it in my tax-exempt account). But, I'd really be surprised if GE doesn't move up several bucks after this pounding today within a few months. So, you see, I'm not day trading, I'm just several-month-trading here (although if the stock were to go up a lot on Monday, I might sell then).
GE was yielding 3.8% at the time I purchased today. With that dividend buffer, the stock seems like a reasonable long-term or shorter-term idea to me.
Disclosure: I own shares of GE in a long-term account and a trading account; the shares I bought today will be sold soon if the price rises dramatically; positions, and rationale for selling, can change at any time.
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Reader Comments (Page 1 of 1)
4-11-2008 @ 5:35PM
Sheldon L said...
Right on the money Steve!
4-12-2008 @ 8:48AM
Michael Schneider said...
Barron's today came to the defense of GE so it could help the market Monday.
In February of 2006, Jim Rogers made comments about GE (see Channeling Jim Rogers section at http://www.Barrelomoney.com-- you have to look toward the bottm of the long list of Jim Rogers items because it was some time ago) that look pretty good today. He called the company's finances a house of cards and also knocked Fannie Mae.