General Electric: Regaining Iconic Stature

Mon, 04/23/2012 - 03:58 EDT - Seeking Alpha

By Tom Armistead:General Electric (GE) suffered a serious loss of prestige as a result of its near death experience during the financial crisis. Heroic efforts by both Uncle Sam and Uncle Warren were required to ensure survival of a company that at the time enjoyed the coveted triple A rating. GE has since repaid its benefactors, and has been making fine progress in restoring its reputation and stature.At a recent price of $19.36, and sporting a dividend yield of 3.51%, patient investors are likely to be rewarded with share price appreciation, provided the company continues to perform and the market eventually grants it some measure of its former respect.
Valuation
Using actual earnings for 2008-2011, and estimating 2012 at $1.57, five year average EPS works out to $1.37. Applying a multiple of 20 to that metric, a target price of $27 emerges. If GE reaches that goal in 3 years, theComplete Story »

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Following the Smart Money Into General Electric
Tom Armistead submits:General Electric (GE) was for many years an iconic company, considered good as gold in the glory days when Jack Welch was at the helm. The company's strength was seriously questioned during the meltdown in early 2009, and the last time I looked into buying it, shares were trading at 6.66, on 3/6/09. I didn't buy any. It has since recovered to close Friday at 16.35.
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BOSTON/NEW YORK (Reuters) - Standard & Poor's lowered its outlook on General Electric Co to "negative" on Thursday, meaning it believes there is a one-in-three chance the U.S.
S&P says GE triple-A could be at risk
BOSTON/NEW YORK (Reuters) - Standard & Poor's lowered its outlook on General Electric Co to "negative" on Thursday, meaning it believes there is a one-in-three chance the U.S.

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General Electric: Regaining Iconic Stature

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