In looking over GE's 2007 guidance, Peggy Lee's 1968 Grammy Award Winning Hit, "Is That All There Is" kept playing in my mind. CEO Jeff Immelt forecast forecast 13% profit growth for next year and the company threw a bone at shareholders by way of a 3c/shr dividend increase. Here's a 5-year chart of GE:
GE's shares are going no where's fast. Sure it can brag about being able to weather a downturn in the economy because it's so big, but that's its problem - those wild and woolly growth days of Neutron Jack are a thing of the past and so are the days of stock splits and big shareholder returns. Many pundits say "buy" GE because it's a "reliable" stock with a decent dividend. That's just typical cheer leading and over simplification since even to get 13% percent growth many things need to go just right (see: recent Fortune write up). Good luck, GE longs maybe 2007 will finally be your year.