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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (53605)	11/11/2015 7:03:04 PM
From: E_K_S	Read Replies (1) \| Respond to of 78701

Re: General Electric Company (GE) - GN value $19.50/share but could have undervalued assets CenterPoint Energy, Inc. (CNP) - doubled up on this utility at $17.50/share (GN=$17.61/share) I have noticed the GE has been creeping higher as they continue to divest assets (many of their financial assets) to get to a 'pure' industrial play. All of my GE shares bought since 2008 are now positive w/ buys ranging in price from $19.50/share to $30.65/share. I just did a Graham No. valuation and it says fair value is $19.57/share. I think I will peel off a few shares (maybe 20%) of my highest priced shares and let the rest ride. If GE can grow like HON then it should be a fun ride. I s/d be getting growth and high margins for their tech/industrial value added products. As a result I do not expect their dividend to remain competitive w/ many of my other dividend payers. So my 'value' plan was to take those proceeds and buy the KMIpA preferred. That's yielding 10.8% and IMO has a low downside risk and a good 3 year income stream. I was thinking of a blended position of 20% KMIpA and 80% GE that should generate a 4.5% dividend and growth. What are your plans for GE and have you considered selling a few shares that could generate a better blended yield? ------------------------------------------------------------------------ FWIW, I doubled up on my CNP holding. I sold previous CNP holdings (2013) in at/above $22.00/share but dividend is now 25% higher and stock price 25% lower. CNP has a stable BV but some hidden assets in their regulated pipeline subsidiary;(1) their Interstate pipeline and (2) their Midstream gathering division. It owns and operates approximately 200 miles of intrastate pipelines; and leases transportation capacity on various interstate and intrastate pipelines, and storage. Regulators have allowed price increases to customers that allows them to maintain a 79% payout ratio. There is dividend growth but small. Current yield now at 5.2%. Stock could go lower if Fed raises rates substantially but I expect very slow rate increses over next three years. EKS