GE: Is it attractive enough for new entry

There are many theories and principals about market and stock. I won't go into those theories as I am not expert on most of the method and its elements. But as a layman who don't know much about all those technical issue which affect a stock and how it price are valued, I will try to explain why it worth to consider GE as a good long term play.

1. When we think about our safety of investment (Question like Is my money Safe after events like BearStern, Washington Mutual, General Motors, etc.), the most important factor to small retail investor is safety of their money. No one enter stock market with a tacit understanding about the risk involved in investing money. With these things in my mind, for common man, GE is the most safest stock to invest. Their risk of losing whole money is zero (Consider all failure, Bankruptcy).

2. Stock Valuation is another thing to consider. Do you want to invest in company such as Google whose share values range from $100 to more $700 (last 4 year) or company whose share values has been in comfortable range even in recession condition of market. If you have high risk appetite, invest into high return valued share such AAPL, GOOG, GS etc to name a few. But I am sure you wont invest all your 401K or your entire saving into these stock. You would play defensive. GE is the best defensive play in the market.

3. Entery Point is another attractive value for GE share. The market overall has been betten down including GE. But with the pospect of recovery and sell, GE is the best for conservative player.

4. Dividend is another factor to consider. Even after being hit by recession, though GE has reduce dividend pay to 0.10 cents for the stock, the yield is still about 3.5% or .86% per quater. Pretty sure, once the market recover, the dividend will be increase.

5. Future product and growth of GE product. GE is already looking at the future, such as green power (I am going to write another articule), Home-improvement, medical-industry, infrasture, etc, the investment look safe for common investor.

Summary from Google Finance
General Electric Company (GE) is a diversified technology, media and financial services company. Its products and services include aircraft engines, power generation, water processing, security technology, medical imaging, business and consumer financing, media content and industrial products. As of December 31, 2008, GE operated in five segments: Energy Infrastructure, Technology Infrastructure, NBC Universal, Capital Finance and Consumer & Industrial. In January 2009, the Company acquired Interbanca S.p.A., an Italian corporate bank. In April 2008, Oil & Gas completed the acquisition of the Hydril Pressure Controls business from Tenaris. In September 2008, the Company announced the sale of its Japanese consumer finance business to Shinsei Bank. During the year ended December 31, 2008, the Company acquired Whatman plc; Vital Signs, Inc.; Merrill Lynch Capital, and CitiCapital.

If you have question feel free to write. I would more than happy to answer.

Discloser:

I own GE share.

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