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GE’s Immelt Buys Shares - Should You?

November 13, 2008

Investors in Dow component General Electric (NYSE: GE) finally had some semblance of good news today, as Jeffrey Immelt, CEO and Chairman of GE, bought $820,000 worth of stock on the open market. In addition, GE’s Vice Chairman Michael Neal purchased $750,000 worth.

Even though these purchases are relatively small compared to the wealth of these two men, it’s an important first step in the long recovery process that GE investors have been waiting for. It goes quite nicely with Warren Buffett’s purchase of $3 billion worth of GE preferred stock.

Does this mean the dividend is safe? I wouldn’t bet on it. Does this mean it’s time to get in? Again, I don’t believe so. I’m sticking to my belief that we won’t find a true bottom for stocks until late summer (July or August) of 2009. If you really think GE stock is not going to get any lower, you can always buy some now and average down if you just happen to be wrong.

Freund Investing Managing Member Ryan Freund holds no position in any of the companies mentioned in this article. Freund Investing has a solid Disclosure Policy.

More on this topic (What's this?)
GE Capital Is Back In The Game To Win It (Zero Hedge, 6/16/09)
Is GE’s dividend safe? (Dividend Growth Investor, 12/10/08)
Read more on General Electric Company at Wikinvest



Written by Ryan Freund · Filed Under Stock Screeners |  

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