Hello everyone, today, I think, is time to talk about General Electric Company.
I can say, that from vision of fundamental analysis it is danger play. Company had a lot of problems for last 3-4 years.
Bad news are:
- we have really bad condition in financial stability, so-so valuation rank (not good and not bad)
- return don't cover debts (but, maybe, it is temporarely)
- overevaluated and price is higher even then FCF
- Company is more volatile because of fundamental problems and is less "resistant" to the news, conferences.
Good news are:
- Finally, company has good financial results, they are best in this industry
- New management took course on decreasing of debts
- Optimization of business cause lesser inventories and decreasing non-profitable parts of company.
- Gurus of Fundamental investing use GE as middle/short term asset, so it is possible to use it too. In september 2020 if You will invest in GE, at the 01/01/2021 you will have 100% of profit.
But I recomend to be careful, look for oportunities and chances. Or if You are ready to play in speculations and risk - don't risk too much, think about money management.
As usual - that is only opinion, I don't give recomendations. Any investing or speculations is risky and can cause losses. Past success don't guarant success in the future.
I can say, that from vision of fundamental analysis it is danger play. Company had a lot of problems for last 3-4 years.
Bad news are:
- we have really bad condition in financial stability, so-so valuation rank (not good and not bad)
- return don't cover debts (but, maybe, it is temporarely)
- overevaluated and price is higher even then FCF
- Company is more volatile because of fundamental problems and is less "resistant" to the news, conferences.
Good news are:
- Finally, company has good financial results, they are best in this industry
- New management took course on decreasing of debts
- Optimization of business cause lesser inventories and decreasing non-profitable parts of company.
- Gurus of Fundamental investing use GE as middle/short term asset, so it is possible to use it too. In september 2020 if You will invest in GE, at the 01/01/2021 you will have 100% of profit.
But I recomend to be careful, look for oportunities and chances. Or if You are ready to play in speculations and risk - don't risk too much, think about money management.
As usual - that is only opinion, I don't give recomendations. Any investing or speculations is risky and can cause losses. Past success don't guarant success in the future.