GE closed at $11.65 today
I’m holding on to my GE Shares even though I have taken a beating for holding over 10 years. My Cost basis is $21.2175 so I am down 45.09% as of today. Here are some reasons why I’m still holding on:
1. Cash generated from operating activities during the quarter totaled $7.1 billion, down from $9.3 billion last year. The company said that puts it on pace to beat its 2009 target of $14 billion to $16 billion since it generates more cash in the second half of the year.
2. The dividend was reduced and will save GE a reported $13 Billion in ’09 adn ’10
3. GE expects GE Capital to post a profit for the year, helped by tax breaks due to the losses.
4, GE hopes business growing out of the government stimulus efforts will be a big help later this year.
5. Total company backlog of equipment and services held steady at $169 billion as order cancellations remained “extremely low” during the quarter
6. GE’s energy infrastructure business saw a jump in profits. It’s also expected to gain sales momentum later this year thanks to government stimulus plans and tax credits for alternative energy equipment, such as wind turbines.