GE, A good low pe stock trading with Junkbond yields.

In the last few days I have been taking large positions in General Electric stock. Abnormally high yields (in the junkbond range) and low P/E for a diversified company with lots of exposure to the new green energy initiatives coming down the line will pay off in the next few years.

GE stock has taken a hard hit due to a unexpected miss in Q1 earnings and rumors in the street regarding GE losing its AAA rating. General Electric did poorly the last 10 years but the next 10 years will bear fruit for GE investors who bought in cheap. More than 40% of GE's buisness is outside the United States with a growing business in the Middle East/Africa and China.

GE is involved in the following businesses. Solar,Windpower,Nuclear,Water,Oil and Gas,Homeland Security,Transportation,Industrial parts,Military. They have a large Capital Finance division that will be positioned to do well in the future once the credit crunch is over.

GE has broken my conservative price target of 28 dollars, GE price target will be upgraded to 29-29.50 a share for friday after earnings report.

I like the Vetco Grey aquisition, I think NBC/Universal will open further buisness for GE in China, they will be providing extensive coverage of the Beijing Olympics.

T Boone Pickens, push for Alternative Energy and his Wind project will put GE in a good light and provide further earnings.

GE Middle East/Africa growth is poised to grow rapidly over the next few years, especially with the inflow of new Oil money.