This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks Fund Managers Hate for 2012

General Electric

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

It's been a challenging year for General Electric (GE - Get Report). Not only has this $173 billion conglomerate seen a 10.2% decline year-to-date (it's one of the 5 Worst-Performing Dow Stocks of the Year), from a technical standpoint , GE is also showing weak relative strength more recently.

It shouldn't come as a surprise, then, that GE is among the most-hated names for the past quarter, shedding $20.7 billion from institutional portfolios as managers took capital losses and sold another 54 million shares. (This in spite of buying from the likes of Seven Cohen's SAC Capital, which added 4.3 million shares of the stock in the third quarter.)

General Electric has its hands in many disparate businesses, from jet engines to home appliances. That diversified manufacturing focus provides GE with some degree of independence from the business cycle, and ample cross-selling opportunities. A focus on new technologies (like next-generation green energy) should help the firm maintain its leadership position in most of the markets that it operates in.

Still, there's a big black cloud hanging over GE's business: GE Capital. The firm's financial services arm makes up a full 25% of the consolidated firm's bottom line -- exposure that could become a concern again. While GE's loan book has been improving for the last few quarters, more economic rockiness could make its financing business a drag on earnings rather than a driver.

At the very least, it doesn't make sense to be a buyer of GE until it shows more technical strength.

GE shows up on recent lists of 5 Auto Stocks in Top Gear and 10 High-Quality Stocks for 2012, and I featured it last week in " 5 Big Stocks to Trade for Gains."
5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $16.94 0.00%
FCX $17.84 0.00%
GE $26.31 0.00%
JPM $67.33 0.00%
XOM $82.53 0.00%

Markets

DOW 17,683.58 -46.53 -0.26%
S&P 500 2,068.76 -8.02 -0.39%
NASDAQ 4,991.94 -17.2740 -0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs