GE Shares before and after Earnings

CNBC Stock Blog — GE Shares Get Bullish Bets Ahead of Earnings — CNBC.com Market News — General Electric - CNBC

Here is the Analysis on GE stock before the Results for tomorrow

The GE has run atleast 50 % from its recent lows in 2010. Berkshire increasing investments might have contributed to this sudden rise. GE has always been the Yardstick of US and also World Economy. The Multi conglomerate has presence in every sector from Turbines to papers , from America's to China and Asia to South pacific, its presence is known to influence and be influenced by every change in Global commerce. Its a very Good long term investment considering it is one of the strongest DOW Jones component to date and contributed to at least 2 % rise in the Total Index return in the recent bull Run..

lets look at the recent run from Past Quarter in October 2010 to Jan 2011, The stock has run atleast 20% from its lows of October

Stock Price GE 3 months

Stock Price GE

10/19/2010 – 01/20/2011

Zoom: 1D 5D 1M 3M YTD 1Y 3Y 5Y 10Y Max

XNYS:GE:+2.36|14.69%

Lets look at the Quarterly Revenue beat versus forecast They beat the consensus estimate of 0.27c with 0.29c, Looking the Forward Estimates the Stock is still trading at healthy 16PE multiple compared to industry average of 19. This gives the stock another 10 % room to run if they beat the estimates again.

Current Valuation GE

	GE	Industry Avg	S&P 500	GE 5Y Avg*
Data as of 01/20/2011, *Price/Cash Flow uses 3-year average.
Price/Earnings	16.1	19.6	15.5	15.5
Price/Book	1.7	2.5	2.2	—
Price/Sales	1.3	1.2	1.3	—
Price/Cash Flow	5.3	8.4	9.3	—
Dividend Yield %	2.5	2.0	2.2	—

Forward Valuation GE

	GE	Industry Avg	S&P 500
Data as of 01/20/2011.
Forward Price/Earnings	14.2	—	13.6
PEG Ratio	1.3	—	—
PEG Payback (Yrs)	8.0	—	—

If GE beats the estimate we are looking at a Gain of 10% (+/- 2% error)

If they don't beat the estimates we can see the stock price dropping as follows

2c down versus consensus - Stock price $16

1c Down versus consensus - Stock price $17

If they equal the estimates and provides a better guidance for next quarter , we can see the Stock price around $19.5

Good luck Investing

Today's Winner ---- FX Energy, Inc. (NASDAQ)‎

FXEN
Sector : oil and Gas exploration
Competitors:
Transocean (RIG)
Brief History of The company
FX Energy is an independent oil and gas company focused on the exploration and production of oil, primarily in Poland and the United States. Its operations are primarily focused on the Fences region of western Poland, which had previously been developed and produced by the Polish Oil and Gas Company. The company believes the area holds oil and gas reserves that have not yet been discovered by previous research techniques. FX Energy is headquartered in Salt Lake City, Utah.
The Company's financial strength can be measured by Free cash flow or in layman terms how fast the company burns through Cash
Here is the indicator and you can notice that the company's stock performance improved after the Cashflow turned positive last eyar

Cash Flow Ratios	2000-12	2001-12	2002-12	2003-12	2004-12	2005-12	2006-12	2007-12	2008-12	2009-12	TTM
Operating Cash Flow Growth % YOY	—	—	—	—	—	—	—	—	—	—	—
Free Cash Flow Growth % YOY	—	—	—	—	—	—	—	—	—	—	—
Cap Ex as a % of Sales	204.70	26.22	10.76	46.58	232.05	57.45	95.80	47.14	128.27	58.98	17.23
Free Cash Flow/Sales %	-364.29	-111.40	-89.59	-285.49	-386.71	-227.66	-160.24	-55.92	-208.13	-98.73	18.54
Free Cash Flow/Net Income	1.28	0.51	0.41	2.27	1.17	1.18	0.96	0.86	0.68	27.32	1.09

The Project Stock price based on chart analysis is as follows

Performance compared with competitors

Total Return % (01/14/2011)	1-Day	1-Week	1-Month	3-Month	YTD	1-Year	3-Year	5-Year	10-Year	15-Year
FXEN	0.92	15.75	24.60	57.79	25.20	141.38	15.48	6.50	3.66	7.11
Oil & Gas Drilling	1.45	4.35	8.09	22.76	6.64	-7.81	-15.65	-7.07	0.87	7.84
S&P 500 TR	0.74	1.72	4.30	10.73	2.90	14.89	-0.76	2.23	1.71	7.13
+/- Oil & Gas Drilling	-0.54	11.39	16.50	35.03	18.57	149.19	31.13	13.57	2.79	-0.73
+/- S&P 500 TR	0.18	14.02	20.29	47.06	22.30	126.49	16.24	4.27	1.95	-0.02

My  Target price is $11   Dec 2011....


See you there
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