GE Stock is Great When Immelt Says It Is


Here is an interesting blog post from the Wall Street Journal about how to know when GE stock will go up.

London-based analysts for Morgan Stanley have been tracking GE's stock price against the number of times Chairman Jeffrey Immelt and Chief Financial Officer Keith Sherin use the word "great" or "greater" in investor calls. They found that incidence of "greatness" rises, so does GE stock. The analysts dub their tool the "greatometer." In the third quarter 2002 call, for example, Messrs. Immelt and Sherin used the word "great" just over 20 times. By the second quarter 2005, the word appeared about 70 times in an hour-long conference call. Over that period, GE's shares rose 37%, to $36.38, from $26.65. (The analysts tracked the average price of GE stock in a quarter.)