As everyone knows GE stock was caught in the credit crisis and by March 2009 the stock traded below $6.00. Since then GE Stock has been on the right trajectory as it has slowly climbed back and has now recovered about 50% of the decline but GE Stock is still a long way from $42.00, the highs from September 2007, let alone the highs of 2000 when the stock was trading at $60.00.
Nonetheless I have investor friends who bought GE stock prior to 2007 and paid anywhere from $30 to $35. They averaged down in 2008 and 2009 buying additional shares at $10.00 and even some at $7.00. They remain very upbeat about GE stock. This also goes to show that quality companies are worth owning particularly if you have the cash and the stamina to buy when others are dumping shares.
Recently on my Yahoo Options Forum which you can join here (shameless plug for my forum) some members have been discussing GE Stock and whether it is on the verge of breaking out to the upside. One forum member commented it looks like it could be ready to try to capture the $40 valuation again. Others meanwhile are Put Selling GE Stock, not too sure where GE stock is heading. I thought I would take a look as GE Stock has always intrigued me but I have never had it in my portfolio except on a rare occasion when the put premiums were too high to ignore.
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