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Strategies & Market Trends : Value Investing

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From: Paul Senior4/11/2008 10:32:18 AM
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GE on sale today and I'm adding a little to my position.

One of the few aaa rated companies, dividend increased every year (approaching 4% now), great depth of management -- possibly the best of all corporate America. A tough competitor in any market that it is in.

Newly revised earnings estimates by the company indicate a p/e of 15 now, if stock doesn't drop further (or earnings are cut more). Looks like '08 to be written off as a terrible year. If world's economy picks up in '09 or '10, GE growth will have resumed, and I am still betting stock will once again - as it has in good times - sell for a p/e of 20 on higher per-share earnings than now.

finance.yahoo.com
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