To southamerica, thank you for replying to my post to you. many kids my age and even younger know more about computers than i do due to i am special needs which means i am not stupid but just like slower.. i use google every day so will search for help there for instructions on how to save postings for back up. thank you also for about Petrobras. My daddy is not here anymore but my mom is and she told me she will open an account for me next summer when i have some money from a summer job. So I will keep that Petrobras on a list and watch it until then. Thank you for taking the time out in replying to me. I enjoy reading what you write and good luck to you too.
. March 2, 2009 SouthAmerica: In January 2004 I had a discussion with one of my best friends when I tried to persuade him to not buy GE common stock at $ 34 per share. I gave him the same explanation that I posted on this forum when I compared IT&T stock in the early 1970âs with GE around 2004. He did not listen to me and he bought a few thousand shares to add to his portfolio that already had a few thousand shares of GE stock. I know that he bought GE stock to get a regular stream of dividends. My friend passed away a little over one year ago, but his wife still has the GE stock on her portfolio. Basically my friend lost both ways since they just cut the amount that GE pays in dividend to their shareholders, and GE stock traded at $ 7.50 per share today, and still heading south. .
The June 1994 low was $7.50. It tried to go lower in Nov-Dec 1994 but support held. The run up in GE and the overall market started from there (GE to $60) and now it has given it all back. In other words, from a technical perspective, there is hope for her that the stock might find support at this level ($7.50)
many companies have been decimated permanently it seems-bac,c,ge? Not many people have witnessed this carnage to blue chip companies. Dont know if any will recover under their current structure. One thing for sure is when they cut dividend days of selling are sure to follow.I didnt know this when i bot it yesterday but sold in premarket today at the highs...thankfully.
Personally, i like GE at this current level ($7-8) for a long position as i believe it is undervalued. It's P/E and P/S are extremely low, it has a long dividend record and it has a diversified revenue base (both categorically and geographically)
Even not considering the toxic sludge GE has from it's consumer financing arm, which they've been extremely secretive about (not helpful, Immelt, really), the fact they just slashed their dividend by 66% doesn't exactly give me confidence this stock has bottomed. People say 'well you can't get in at the bottom, and even if GE bottoms around $5, what do you stand to lose?' The answer is about 35% of my money. When stocks drop this low, people get lured but their 'cheapness,' forgetting or not realizing that even a small further drop decimates your investment, because of proportionality.