With the cut in the dividend by General Electric (GE) the company is signaling that:
A) They are financially in trouble with sales, product lines, revenue, earnings and the dividend payout ratio.
B) They are trying to be prudent and commence a rescue and repair of their company before “things” get worse.
One of these is very negative for the stock, A and the other, B, should be positive for the stock but not in the short-term.
With General Electric Stock (GE) down at levels not seen since January 2012, many investors are trying to decide whether to plunge in and risk their capital in the hopes that the stock recovers. This is only natural for investors. When something looks like it is “on-sale” we tend to jump before we contemplate all aspects of the trade.
When a stop collapses investors often see the potential gain if it recovers but not the risk they are placing their capital in.
The whole concept of investing is to risk capital to grow it. Jumping into a collapsing stock, is often like gambling and investing does not have to be a gamble.
There is a huge difference between a stock that has fallen in a bear market and a stock that has collapsed in a bull market.
This article looks at 5 investing tips to get investors thinking about how to invest in General Electric Stock (GE) aside from just rushing into a stock trade now that the dividend has been cut and the stock is under selling pressure.
This strategy article is 2700 words in length and requires 7 pages if printed. It is for members.
5 Investing Tips For The General Electric Stock (GE) Dividend Cut and Collapse – Nov 15 2017
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk.