Over the long term, I believe General Electric (GE) has the potential to double or triple in price this decade. Let me explain why. General Electric has a heavy influence across multiple industries that are tied in heavily to developing and recovering economies. It offers innovation and infrastructure support that is essential to every country and economy on the planet.
Its investment in energy, healthcare, technology and emerging markets will offset the current volume of debt in the near future. As the world economy and developing nations continue to grow, General Electric’s value will eventually surpass its most valuable point in the market nearly 15 years ago. General Electric’s services and business model is inundated in the evolution of human society and technology across the globe. General Electric’s services drive the growth of civilizations and vice versa.
Right now the 50-day moving average for the stock price is right along with the current stock price of around $19, the moving average for the past 200 days is about $1.25 less. The 52-week range is from $14 to $21, the beta is over one but with increasing energy revenue in the past quarter I feel the management has GE on the upside rather than the downside. The market cap is over $200 billion and the all-time high on the market for General Electric is around $60 per share. The total debt to cash flow ratio is one of the major factors keeping this stock price so low; debt exceeds $430 billion while cash flow is under $85 billion, operating cash flow is under $35 billion.To continue reading, click here.