Wow. General Electric Company (GE) is up 7.9% to $19.89 as I write this. Volume is strong. I wish I could say I was participating in today's rally, but alas, I am not. Late last year, I sold out of my GE position, as I explain in this article. I obviously could have sold at a higher price, but hey, I needed to sell when I did; that's just how it goes.
I like the price action I'm seeing, and I believe the Q4 profit report was solid. According to the Associated Press, continuing operations captured 36 cents per share, four pennies above the projection. Probably of more significant note in some respects is the top-line performance: the AP stated that net sales increased on a year-over-year basis, a feat that hasn't been observed for quite a while.
GE made a new 52-week high of $19.97 during the intraday session. The 52-week low is $13.75. Could be a good set-up for a momentum play, I suppose, and I do believe the trend for the conglomerate in 2011 is in the upward direction, but that doesn't mean I would initiate a position this afternoon. No way. Maybe that's taking a chance on missing out on some gains, but it's a chance I'm willing to take. In fact, those who were simply trading the company with a short-term mindset probably should realize at least some of their gains just to be safe.
Still, even if you did buy the strength, you may not have too much to worry about. GE hasn't been the best stock over the last couple years, but the twelve-month chart does show signs of recovery. Fundamentally, the company seems to be improving. Last month, management increased the quarterly dividend for a second time in less than a year. Right now, the yield is an attractive 2.8%.
I find GE to be an investment idea worth some research time.
Disclosure: I don't own any company mentioned; positions can change without notice.