GENERAL ELECTRIC CO (NYSE:GE)

Many blue chips have become very cheap with the recent rise in energy costs mostly thanks to hurricanes Katrina and Rita, driving down the price of one particular blue chip, GE.

I personally recommend this stock at anything below $34, I picked up 44 shares at $33.09 with the intent of a trade. Only to find GE also was paying a regular quarterly $0.22 dividend so I concluded to hold onto it even longer. If I decide to stay for the short term I plan to hold on to it until my price target of $35.50 (or a highly conservative $34.50) based on the current P/E ratio and expected EOY earnings.

This stock also has good long term potential, besides being a dividend yielder (which everyone should have 10-20% of a healthy diversified portfolio invested in) with a dividend yield of 2.70% at its current closing price on Oct 7 of $34.22. GE has shown steady growth in the double digits, and according to their earnings forecasts could peak at 16%. Many professional brokers see this stock going to at least $37.00 within the next 12 months to as high $45.00 (mean-$41.50) according to the information I'm provided with by my broker - Scottrade. Also available publicly at finance.yahoo.com and other various sites.

But it only pays if you own it.

I am not responsible for your trade decisions made or not made because of my opinion shared here. You should always do your own research before buying/selling a stock.