Stock is pumped before earnings tomorrow. Nothing at GE has changed. Fundamentals remain the same. This will come down hard for the next couple of weeks. Price target - Single digits
Please explain your argument better. Are you asserting a drop based upon fundamentals or on a trend? Because yes, fundamentals are awful. But that is old news -- and with a 56% drop in market cap, fair to say that everyone has gotten that message. Any fears and worries have already had time to digest. But; if you are making an argument about trend, look closer. That long resistance line that we ALL have been following since November was surpassed today. Longs might have appreciated a close above it... but nevertheless, resistance was broken. I'm also not sure what to make of the the three pre earnings pumps. Review this action with context. In your two previous examples, the stock got absolutely hammered in the two weeks ahead of these earnings. Of course, there was going to be some bounce. This isn't true for this turn though. In the three weeks leading up to tomorrow's earnings, GE has triple bottomed. For the first time in a long while, this stock is facing an earnings announcement with some actually footing below. I'm not saying you are going to be wrong -- although, if you are, I question whether it will have been for anything more than a lucky guess. However; even if the earnings are poor, there is nothing here yet to suggest it will fall any further than 12.80. IMO, the fun is all on the long right now. G/L
dondraper
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@bigdmail, Interms of buffetts investment principles 10x earnings. GE current TTM earnings is 0.36 and fwd earnings is 1.05. 10x is what buffett would pay for a value company. GE isnt making money so giving it a generous multiple of 6-8x earnings. GE is a buy at 1.05 *($6 - $8) range giving a buy price of $6.05 to $8.40. The company fundamentals are not there yet. So in a matter of year GE stock will trade in single digits. The chart clearly indicates the companies performance. If recession hits before turn around i expect it to trade around $5.
dondraper
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@dondraper, once you read their quarterly and annual reports there is more dirt than one can see by just looking at triple bottoms