Stock Picking, Investing, Stocks

We’re (Still) Looking At: General Electric

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A little analysis:

As of right now GE stock price is 19.08. Their 52 week high is 41.22

If someone were to buy in now and hold the stock until it rebounds to 41.22 they would make a 116% yield.

That of course assumes that it would rebound to 41.22. A more interesting historical fact is this.

After 9/11 GE went from 39.66 (Sep 6, 2001) to as low as 22.48 (Feb. 14, 2003).

By Dec 17, 2004 it was up to 36.75 and on Oct 5, 2007 it was at 41.77.

If you were to buy in at 22.48 you would have seen a 63% yield in 22 months and an even greater yield if you held it longer than that.

To put that in perspective, a $5000 investment would have turned into $8150 in less than two years. In addition you would have earned $304.14 in dividends. Putting the total at $8454.14 (69% or $3454.14 yield in 22 months)

This is the lowest GE has been since May 1997. They are at a 20 year low and have historically proven that they are able to withstand tough times in the market.

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