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explain why you chose that certain one stock

2007-02-09 13:07:39 · 2 answers · asked by virgojt1964 1 in Business & Finance Corporations

2 answers

I too would choose GE. They are into a lot, but a lot of what they are into is politically correct--building power generating wind mill equipment, building more fuel efficient railroad locomotives, making more economical lights, etc.

Hillary Clinton went on record after Exxon announced its record-breaking profits that she "wants those profits" for government programs. (Exxon paid and collected almost $100 billion to various government agencies last year, even the $8 billion in dividends paid another billion or two to the government when the stockholders got taxed again--Exxon is a cash cow for the government) Future profits MAY be bigger, but the government may bleed them for still more. Exxon is good, but GE is better in the prospects of dealing with adverse government action.

Apple is a sardine swimming among whales. They are a good business, but GE or Exxon could just about buyout Apple at a moment's notice. Sure Apple can get bigger, but not an awful lot bigger.

GE would be my choice if I could only choose one.

2007-02-13 04:23:07 · answer #1 · answered by Rabbit 7 · 0 1

GE, because the company has a multitude of business lines (finance, media, and health care to name a few), has a decent dividend yield and a moderate P/E ratio. Growth in the company's earnings going forward should be much less volatile than the earnings from either Apple or Exxon.

2007-02-10 13:58:24 · answer #2 · answered by BooValu2 3 · 0 0

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