General Electric (GE): A 'global juggernaut'

Posted Jun 20th 2008 10:10AM by Steven Halpern
Filed under: International Markets, General Electric (GE), Newsletters, Stocks to Buy

"Despite negative analyst commentary, General Electric (NYSE: GE) is one of the biggest and best blue-chip stocks," says Karim Rahemtulla. The contributing editor to The Oxford Club looks at the "global juggernaut."

"It's now more crucial than ever that your portfolio holdings are well-diversified, and GE is arguably the most diversified company in the world, with exposure to a plethora of sectors.

"Its GE's media businesses are performing well and will receive a boost from the Olympic Games this summer. And with oil prices soaring, GE's alternative energy businesses (wind turbines) are showing excellent growth and will benefit from the shift to alternative fuels and power generation.

"GE's aviation division is enjoying a boom from global growth in travel. And its medical division continues to benefit from strong growth, as the sector breaks out innovative new technology for a variety of ailments.From consumer products, to alternative energy, to aircraft engines and medical technology.

"What's more, it has a massive global reach. While the United States is its biggest market, it also grabs a huge percentage of its revenue and income from overseas. At a time when the U.S. economy is struggling, this gives us added protection.

"While many analysts and investors saw GE's disappointing earnings report and either passed on the company, or sold off, savvy investors know that this just makes shares of this global giant a whole lot cheaper. After all, why buy something at a high price when a skittish market gives us a great opportunity to buy low?

"Sure, GE may not be a momentum play, but it's a massive hub of global growth and the perfect company to invest in during the current market. First, when you've got a stock trading at less than 15 times forward earnings, plus has a great book value, growth and opportunity, you've got a real bargain."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Tags: blue chip stocks, BlueChipStocks, featured, ge, general electric, GeneralElectric, Karim Rahemtulla, KarimRahemtulla, oxford club, quality stocks, thestockadvisors.com

Print this

Reader Comments (Page 1 of 1)

6-20-2008 @ 12:14PM

gumbo koontz said...

How do you connect GE and other companies that are suffering from losses everywhere?? yet GE stock is falling...

6-21-2008 @ 8:25AM

nickerson said...

If their was any stock I would not own it's this one. The company has been doing business with Iran through third world countrys and the arm of their media, NBC is to the extreme in backing left leaning people. The news is not reported fairly by this media outlet. Would like to see this company go under.

6-21-2008 @ 9:46AM

Tom said...

GE has been a BIG disappointment stock for the last 6 years. It has gone no where. Just to keep up with overall financial markets it should be around 55 today. Financial writers and brokers keep touting it.

6-21-2008 @ 9:49AM

Harry said...

GE is like owning a poor performing mutual fund. What it makes in one sector it seems to lose in another.

6-21-2008 @ 11:04AM

Thomas Fess said...

Human-Nights:
WHY!! Would you take savings and buy a stock that cannot manage there cost. One, they paid that worthless old Jack Welsh millions for what??? Ms Most Perfect Sussie!!!!
Two, over pay news casters on CNBC who are rude with there e-mails. Squawk is good source. They never report on real worthless goverment spending like 100 million a year on NASCAR spending and otter sports!!
You invest in what is moving in the market. Make some money and wait for the next hot stock run..
This long term investment and old blue chip companies will bring you pain.. Don't live in the past..

Pooor Tom

6-21-2008 @ 11:50AM

fidgetz2 said...

I think that GE is the most underappreciated companies trading today. It is a well run company with decent management (something that is hard to find these days), gives you a good 5-10% annual return and has a solid foot hold in one of the largest growth areas today, renewable energy. Yet, it just does not get any love from investor and I do not know why.

6-21-2008 @ 2:44PM

jpems said...

GE needs an ethics division, if they did, they would fire the maintenace supervision in Erie, they let people make purchasing decisions based on who pays them off the most.

6-21-2008 @ 2:52PM

Mike said...

GE has been a below average performer since 2001. Get a call from a broker and you can almost bet GE will be one of the names...

6-21-2008 @ 3:06PM

Bud said...

GE's big problem is that it has investments in a plethora of companies. Karim needs help in recemmending this company...and Stephen for giving it a push...

How many shares do you want? I'll sell you mine.

6-21-2008 @ 4:30PM

Arnold said...

Surprised at Halpern pushing GE. It's been a dog in recent years.

6-21-2008 @ 8:50PM

Pete said...

One thing I don't understand abt. GE. It carries a HUGE amount of debt. But nobody seems to mentioned that fact. Its market cap is $273 billion; but it is loaded with $548 billion of debt. Is this related to its financial arm, and part of the reason the stock has done poorly in recent times? And regardless of that, isn't that bundle of debt an anchor on the company? A related question: With what must be enormous debt payments, if the economy keeps going down, is the dividend safe?