Monday, April 22, 2013


Just finished reading an article on about JPMorgan's downgrade of GE.  They've changed their rating from "buy" to "neutral".  While I agree their past quarter may not have been stellar, I disagree with their overall analysis.  The same article talks about GE's massive cash hoard (around $90 Billion as of March 31st).  They also talked about some positive changes to GE's business portfolio which I think will cut losses and improve profitability going forward. 

I'm no fan of JPMorgan Chase in the first place, because of the experience I had with them as a credit card holder, but in this case they may have done me a small favor.  All the people who do take their advice and bail on GE will drive the price down, making it easier for me to pick up additional shares at a lower price.  As long as GE does not cut their dividend (which seems unlikely anytime soon given the amount of cash on hand and share buybacks), then a lower price per share means higher dividend yields.  As a long term investor in GE, I'm thinking this is a good thing.

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