Right time to buy General Electric?

Question

The stock hit its lowest point in 4+ years yesterday, it has constantly delivered solid earnings results (except for last April) and is one of the most reliable company's out there. Is this the right time to start buying? Please explain why.

Answer 1

Morally, as long as General Electric does business with Iran, no one should buy their stock or products.  They maintain several millions in contracts with Iran and continue to trade.  Iran has been actively destabilizing Iraq, thus killing Americans and preventing us from leaving that country!

Financially, their PE is 12.5, which seems a bit high for a conglomerate.  At a high level, their stock is not priced attractively relative to earnings.

Answer 2

Don't buy the stock...buy the Jan 2010 LEAP option...It'll cost you less and give you better leverage.  PEACE!