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  Is GE a safe bet against all odds?
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michelwil...@gmail.com  
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(1 user)  More options Feb 23 2007, 8:06 am
From: michelwil...@gmail.com
Date: Fri, 23 Feb 2007 13:06:06 -0000
Local: Fri, Feb 23 2007 8:06 am
Subject: Is GE a safe bet against all odds?
No. In the last 5 years GE has lost 7.05% while the S&P , the Dow, and
the Nasdaq have gained 26.78%, 21.66%, and 36.38% respectively. Should
i just change my investment thesis that GE is only a safe bet when the
overall sentiment on the market is bearish? It appears that money
managers who want to make money don't play the GE card. It's so sad.
It's the so called "best managed american company". Do not expect this
baby to spike!!

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leon.panth...@gmail.com  
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(2 users)  More options Feb 24 2007, 10:32 am
From: leon.panth...@gmail.com
Date: Sat, 24 Feb 2007 07:32:42 -0800
Local: Sat, Feb 24 2007 10:32 am
Subject: Re: Is GE a safe bet against all odds?

michelwil...@gmail.com wrote:
> No. In the last 5 years GE has lost 7.05% while the S&P , the Dow, and
> the Nasdaq have gained 26.78%, 21.66%, and 36.38% respectively. Should
> i just change my investment thesis that GE is only a safe bet when the
> overall sentiment on the market is bearish? It appears that money
> managers who want to make money don't play the GE card. It's so sad.
> It's the so called "best managed american company". Do not expect this
> baby to spike!!

Nothing sad about it, except for instant-gratification day-trading
kiddies.

That was a very strange selection of numbers you cited.

I bought GE at 23, back in 2002 (that was 5 years ago). It's now at
35, and I'll continue with the dividend reinvestments. GE *IS* the
Dow. It is an index fund that predates index funds.

Timing and patience, folks. Timing and patience.


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michelwil...@gmail.com  
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 More options Feb 25 2007, 8:55 am
From: michelwil...@gmail.com
Date: Sun, 25 Feb 2007 13:55:55 -0000
Local: Sun, Feb 25 2007 8:55 am
Subject: Re: Is GE a safe bet against all odds?
lucky you. you problably bought it at its 10 yr low. it's true that GE
is going to be around for a while. The question was: is it the best
investment for one's money? Good luck to you. I guess you did very
well.

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iamt...@gmail.com  
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 More options Feb 25 2007, 8:57 am
From: iamt...@gmail.com
Date: Sun, 25 Feb 2007 13:57:28 -0000
Local: Sun, Feb 25 2007 8:57 am
Subject: Re: Is GE a safe bet against all odds?
GE's current price is - how do I say? - ridiculous.  I am at a loss to
explain it's downward trend of late.  I bought at 34.71 last
September.  Earlier this year, it was at 38!

With the price at $35-ish, It's current valuation makes GE practically
a steal.  Actually, I'm somewhat happy about the current price drop
because my reinvested dividends will buy me more shares.

Leon is correct, GE requires patience.  15 - 20 years from now, I
think I'll be quite happy with my investment in GE.


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miked789  
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(1 user)  More options Feb 25 2007, 12:51 pm
From: "miked789" <miked...@gmail.com>
Date: Sun, 25 Feb 2007 09:51:40 -0800
Local: Sun, Feb 25 2007 12:51 pm
Subject: Re: Is GE a safe bet against all odds?
Doing some _very_ rough calculations using previous increases in
dividends as a guide:
Purchase GE now, $35.5, dividend of $1.12 (3.15%)
2017 = $2.576 dividend = 7.26 % (on 2007 purchase)
2027 = $5.15 dividend = 14.5% (on 2007 purchase)
2037 = $10.30 dividend = 29% (on 2007 purchase)

This of course, is only projecting past performance into the future,
which may not be a useful indicator of future performance. Don't
purchase stock based on my say-so!

In 2027 for every 100 shares you own you would receive about $515
dollars in dividends each year.
In 2037 it would be $1030 for every 100 shares.

This is about average, perhaps sub-average for companies. The right
company could give out ten times that easily, with decent growth in
the stock price, allowing for splits and better earnings.
Of course, a major world wide economic problem could effect those
figures, but then it would probably effect every company. (Or most
every company)

On the other hand, GE is probably still going to be around in 2037,
producing dividends. Will Altria still be producing the same dividends
as more and more countries place prohabitions on smoking in public
places?
Will the American car manufactorers be around? It is difficult to
predict the future, which companies will fall by the wayside of
technological progress, but GE has shown itself to be a survivor. Of
course, a change in management could change that.

And did I mention these are very very very rough calculations, without
taking inflation into account?


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