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Safest Way To Buy Into General Electric Is Through Options

Summary

The stock appears to be fairly valued based on next year's earnings estimates and the company has great near-term earnings growth prospects.

The dividend is good but the financial efficiency ratios look bad only because of the write-off the company took last quarter.

I outlined an options strategy below to enter the stock because at this price there appears to be more risk than reward.

General Electric (NYSE:GE) is a diversified industrial conglomerate. On July 17, 2015, the company reported second quarter earnings of $0.28 per share which was in-line with analyst estimates. In the past year the company's stock is down 4.37% and is losing to the S&P 500, which has lost 1.9% in the same time frame.

The company recently received bids for the Japanese finance operations it currently owns and it was this bit of news that made me want to evaluate the stock on a fundamental, financial, and technical basis to see if it's worth creating a position in any portfolio.


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