Time to buy GE

Hey everyone

This week, GE reached a new low. The stock has now gone lower than when the earnings hit came a month ago. GE just reported that they are keeping '09 figures ($2.46) where they are. That is an increase of ten percent per share. With the current price, this puts GE's P/E at a very likeable 14.

I believe GE is in a great position with what I call "The Green Revolution" (shown by the turbine purchase from T Boone Pickens Fund). This success will only grow as the presidential candidates continue to press their own green plans that no doubt will include purchasing systems and materials from GE.

I think the financial house is in as good a shape as it can be and that there will not be another Bear Sterns surprise. Many people forget that that episode came during the quiet period before earnings so the company couldn't say anything. But as the Bear episode reminded all investors, if you don't have access to all info, anything can happen.

They are also looking to divest themselves of their appliance division that should garner 5-10 billion.

So over the week I purchased a 32/34 December call spread. I think the stock is fundamentally positioned to add value. has the profit to get us moving positive over the next few months. Technically resistence levels don't show up until the 34 range.