General Electric (GE),
is on the price downside and could move much lower. For its current
price cycle that began in 2003, GE peaked at $40.93 on October 2,
2007. Its June 20 close at $27.38 represents a 33 percent decline
from that peak.
The stock's chart of daily closes since January 2, 1998 shows support
at $20, a price GE could fall to if the broad stock market continues
on the downside and GE offers no new positive earnings news.
One bright note for GE is that its dividend seems safe and the current
dividend yield is 4.50 percent. And this yield would go even higher
if the stock continues to decline.
I (RAH) am long GE.
Related Articles:
Falling Prices Push
Up Dividend Yields
Entry Point
Chapter 4: Ugly Downsides - Avoid the Price Downside
Posted June 22, 2008.
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