Bought another stock

After selling my Boeing (NYSE:BA) stock a couple weeks ago I began researching a few companies. After all was said and done I decided to go with a tried and true company, General Electric (NYSE:GE). I felt that this stock had a great upside with minimal downside. It is trading in the mid $16 range. The last time it saw this price was right before a big run up in late 1996/early 1997. When it topped out on that run it was at nearly $60 per share.

I think the future is strong for GE as commercial aviation rebounds. As they begin to deliver more engines for the 787, 747-8 and A350 they will gain more market share. Their partnership in CFM (engines for the 737 and A320) will also lead to great profits. GE engines some of the greatest, and best selling, airplanes in the world. They also have a healthy lease/finance arm. As the market improves and people start traveling they will be able to raise lease rates on their aircraft. This in turn will lead to higher profits and more growth.

GE also pays solid dividends. These dividends are not in danger of going away, they have been paying them since June of 1987. The only downside is they have recently cut their dividends, from the $0.30 range down to $0.10. Short term this may be a bad thing for investors, however, GE is a solid company and will have the free cash flow to be able to pay these dividends without much trouble.

Overall, I think GE was a buy for me. Anytime you can get a solid Blue Chip under $20 it should be considered. GE was purchased for the long haul, not an overnight turn. It will form a small base with constant dividends and slow maturity to be a healthy part of my portfolio.

Linn Energy (LINE)

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=ACBJ&date=20090611&id=10003095

Some apparent neutral news here on my largest holding Linn Energy (NASDAQ:LINE). Mark Ellis will take the helm in January and replace Michael Linn as CEO. Ellis is currently President and COO of the company. Linn will stay on as Executive Chairman of the Board.

Not bad news by any stretch as Linn has done a fantastic job running this company and will not go completely hands off. When Ellis takes the helm in January he will have about 3 years in the COO position behind him, so hopefully some good experience. Ellis has been in the industry for many years and has served in leadership roles in some large multi-national companies.

I am excited to see what direction Ellis steers the company towards. LINE is a very solid stock with a great dividend ($0.63/share last quarter) which yields just about 12.5% at the present time. Michael Linn has said the dividend is secure for the next three years as they are hedged near 100% for the next three years.

Overall not a bad spot for profits. I bought in at $16.39 a little over a month ago and the stock is hovering around $20. No complaints here!