Monday, April 12, 2010

General Electric Recent Stock Performance, Commentary, and Earnings Preview

Chasing Value: When Will General Electric Double?
There are plenty of disgruntled shareholders out there who are unhappy with their General Electric (GE) stock, which has compressed in value over the last ten years from a high near $60 in August 2000 to a low around $8.50 in March 2009. GE was one my 2009 stock picks that disappointed by underperforming the group and the over all market. If you are among the patient, stubborn and hoping shareholders, this year provided more than a glimmer of hope.

Is GE a Buy?
General Electric's (NYSE: GE) stock has had a great run recently -- it's up 24% year to date, and up 187% from its market's crisis low on March 5 last year. Is it still worth buying?
A world-class company selling at average multiples?

The data I looked at (part of which is included in the above table) show that GE is squarely in the middle of its peer group along a wide array of valuation metrics: price-to-earnings based on estimated earnings per share for 2010, 2011, and 2012, price-to-tangible book value and dividend yield. A world-class company priced at average valuations? Surely that's a "buy" signal. Hold on: The companies in GE's peer group are hardly run-of-the-mill: Many of them are also superlative businesses (or sets of businesses, since we're talking about conglomerates).

GE Bull Still Sees Soft First Quarter
Morgan Stanley likes where General Electric(GE) is going but, at least as the far as the first quarter is concerned, it thinks the company is not quite there yet. The outlook for GE is improving as order rates continue to strengthen and GECS [GE Capital] concerns appear increasingly manageable," Morgan Stanley said in a research note on Monday. "1Q10 will likely be another soft quarter however, as loss from Olympics, softness in late cycle businesses and increasing GECS provisioning keep pressure on earnings."

Earnings Preview : General Electric (NYSE : GE), Q1, 2010
General Electric (NYSE: GE) will release the company's first quarter of 2010 earnings on Friday, April 16. The release will be immediately followed by a conference call at 8:30 AM to discuss the earnings report. Conference call participants will be Jeff Immelt, Chairman and CEO; Keith Sherin, Vice Chairman and CFO; and Trevor Schauenberg, VP Investor Communications. General Electric is one of the largest and most diversified industrial corporations in the world. GE is engaged in developing, manufacturing and marketing a wide variety of products for the generation, transmission, distribution, control and utilization of electricity. Some of GE''s products include major appliances; lighting products; industrial automation products; medical diagnostic imaging equipment; motors; electrical distribution and control equipment; locomotives; power generation and delivery products.

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