EKS, FWIW, The Schwab Equity Rating for GE since Aug 3 is a grade of D, meaning Sell. (Schwab Equity rating system has performed very well relative to other systems in the last few years.)
The system is based on several criteria for Fundamentals, Valuation, Momentum and Risk. For this week and last, GE got poor scores on the following fundamentals that are given a high priority: Free cash flow generation and growth; efficient mgmt of capital; and ability to fund capital.
In the valuation section, high importance is attributed to balance sheet valuation, for which GE received a Neutral rating.
However, there have been recent purchases by informed investors, another valuation category ranked as Medium in importance. GE received a high score there. (So you seem to be thinking along the same lines as other good informed investors here!)
In the momentum category, I read you as not too interested in that category, but, FWIW, GE gets a mixed review there.
In the Risk category, defined as Company size and stability, and weighed as Medium in importance, GE gets high marks the last couple of weeks.
I had entered GE a month ago for the very reasons you had mentioned: blue chip with great international exposure. And I believe a positive Barrons article. Got spooked this week during the downdraft and sold off after checking the Schwab rating. |
