Money & Investing - Banks.com

General Electric (GE) represents one of the most diversified corporations in the world. Holdings include everything from media companies to financial services to appliances. And, with a big miss in quarterly earnings dragging GE down (and the rest of the stock market as well), the forecast for the rest of the year has turned grim.

GE, unsurprisingly, blames the main problem on its financial services efforts. MarketWatch reports on GE’s financial services issues:

GE reported a surprise 6% drop in first-quarter earnings and cut its 2008 outlook, blaming its financial services business. GE blamed much, but not all, of the below-forecast results on an inability to complete asset sales as well as higher mark-to-market losses.

I’m not sure this means it’s time to abandon GE, though. It actually may be a good time to buy. General Electric is a venerable and solid company. It has a wide range of assets and businesses that can support it overall. And, while nothing in life is certain, it is more than a little likely that GE will recover from this. Which means that if you think GE is sound in overall fundamentals, now is a good time to buy.

As the stock price drops, you will be able to buy more shares for your money. When the credit market crisis ends, and the stock market recovers, GE is likely to be one of the companies that gains. Which means that if you “buy low” now, you can “sell high” later — with many more shares.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.

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GE, investing strategy