As we said in July's "General Electric Approaching Psychologically Important $20.16 Level (GE)":
Just funnin' ya, the psychologically important level is $21.01.Yesterday GE closed at $21.12. First time its been there since February 2011. Before that 2011 pop you have to go back to October 2008 to find a higher handle.
One of the things we look for is relative strength on down days. In this case GE is up 9/10% vs. a 1% decline on the DJIA of which it is a component.
The point that interests us is the 52 week high at $21.00....
Jeff Immelt has destroyed a lot of wealth.
In early pre-market the stock is changing hands at $21.01 although we did see a $20.99 print.
From Motley Fool:
Shares of General Electric (NYSE: GE ) hit a 52-week high on Monday. Let's take a look at how it got there and see if clear skies are still in the forecast.
How it got hereIn an environment where earnings growth is like squeezing blood out of a turnip, General Electric's second-quarter earnings report and steady guidance are enough to propel it to a new 52-week high.
For the recently ended quarter, GE reported its ninth straight quarter of operating earnings growth as industrial segment revenue grew 9%, organic growth leapt 10%, pricing ticked slightly higher, it unveiled a plan to split its energy infrastructure division into three new segments, and, most importantly, earnings at GE capital continued to improve as Tier 1 capital increased to a healthier 10.1%.
If you recall, GE's share price was sacked during the credit crisis due to poor-quality loans. Since then, it has purposefully shrunk its loan portfolio (revenue fell 8% this quarter for GE Capital) in order to rid itself of non-performing assets....MORE