I stare at the chart of General Electric (GE) daily as the significant drawdown experienced over the last two years of a well-known blue-chip makes me eager to buy. However, tempering my excitement is the best thing I can do because this isn't the same company - the innovative industrial powerhouse - that it once was. The dividend GE offers is still above the market average, but while the stock trades at a discount to Dow, it's not a screaming buy. I think there is value within GE; however, the fate of the Power division is preventing buyers from building up sizable stakes. The other divisions trade at a premium to power, but that value will only be unlocked through a split - something investors may not initially be receptive to. For now, I think if the stock dips below $15, it is a buy, but investors should still exercise considerable caution.
Source: Business AM Live
