General Electric: Why This Week Is Important

Few companies in the financial markets have a history rivaling that of General Electric Co. (GE). For dividend investors, the stock is usually held in even higher regard. But some critical questions need to be answered in terms of the long-term viability in several key business segments, and recent changes in upper management have increased the uncertainty factor for share prices that are essentially in a free-fall. When we are dealing with a company as large (and diverse) as GE it is critical to assess the broader economic framework as it stands to cultivate stronger earnings performances. This week, we are being several important clues that will help argue for more bullish or bearish stance in the stock. If you are a long term holder of GE, this will be critical information in assessing whether or not the stock is forming a bottom (and ultimately whether or not these positions should be maintained). We maintain our bullish stance in GE but will use further developments this week as a means for restructuring positions once all of the data reports are released

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