Bought More GE

General Electric (GE) had a crappy earnings report in mid April, because of its financial division. Its share price dropped quite a bit that day, and has continued downward. I've been waiting to pick up some more shares. Yesterday, as the stock hit a new 52 week low, I bought some more shares.

The credit crisis will eventually get resolved. The assets that GE agreed to acquire from Merrill Lynch (MER) for fire sale prices should boost earnings in the future if that deal goes through.

Moreover, the US dollar is in for a longterm decline, and most of GE's sales are overseas. Its infrastructure unit will continue to growing quickly. The world will need alternative sources of energy, and GE is the leading producer of wind turbines. The world will need clean water, and GE is a leader in making purification, desalination, and pumping equipment. Further, the recent plan to sell its appliance division, if it is executed, will reduce GE's exposure to the weak housing market.

I think the recent earnings hiccup is a good buying opportunity. The stock may go lower, of course. If that happens, I'll probably buy more shares.

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