I added about 2500 shares to my long term portfolio. Not a stock I trade on a daily basis this is more of a buy and hold stock really.
In this market (manic depressive with huge swings) it seems like a good short term play is to play the overreactions. Let's see... Bear Stearns was worth two bucks a share after a small Sunday announcement. Who would think it would be worth 10 bucks now ? A 500 percent gain ? Was that a good or bad short term play ? GE missed big, and they don't do that too often. Is a 13 percent drop fair ? Probably, however, 32 seems like a pretty popular place for people to start buying. So what is short term anyway ? Now it seems to be a few minutes to a few weeks. Personally, I was fortunate and was in cash when GE hit 32 last week, and after riding integrated Oil up to 112 a barrel, I think GE is a good deal. The failed to book some sales this quarter for various reasons, that seem more like a delay they didn't forsee in the last few weeks (that's bad) but I'm soft of wondering if some rabbits will be pulled out of hats over the next few days. If not, a little more pain, and patience. I'm betting GE sees 34 in the next two weeks. Nobody makes money when the market sits still. If GE isn't a good play, what is ? I think about time adjusted risk, in other words, what is the likelyhood of an investment in GE at 32 eventaully (like within a month) gaing a few points. I think it's good, and I bet my money on it. I don't lose the bet because GE hits 29. I only lose if it stays below 32 forever. Too much fed protection and market gaming for me to believe that.
Remember you also get a dividend with GE and the yield at those prices aint too shabby. Just take those dividends and reinvest, lets see what 10-15 years of that will bring. GE is diversified, has international exposure they provide consistent dividend payouts. They are the total opposite of CROX Another stock I like is T, I bought 5K shares in 03 and it is also in my long term portfolio. I think its a good buy and nice yield if you want to add them to your buy/hold portfolio.
Woot Woot!! I love making money. GE baby at 32.77 Woot! Felling like McScrooge today. counting those pennies.