Wednesday, January 21, 2009

GE @ $13.03

Kevin O'Leary was on BNN (Squeeze Play) and when asked by a caller about GE, he mentioned that GE management guaranteed the 2009 dividend but not 2010. He then went on to say that GE would test single digit prices and new 52 week lows (which it hit today at $11.88).

However, if you look at PE and yield (as the caller did) you would think that GE is undervalued. He also mentioned that GE was in a strong position to benefit from the infrastructure investment that governments were initiating to boost their economy.

At the very least, GE should be on a watch list despite it's Hold rating.

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