Sunday, October 29, 2017

Stock Musings

Two stocks catch my eye as of October 27, 2017: Freds, Inc. (FRED) and General Electric (GE).

I've never set foot in a Fred's. The stock closed at a meager $4.77/sh on Friday, breaking the psychologically important $5/sh mark. Its inventory numbers seem high, and it's not doing a good job calling in receivables as quickly as possible. While Dollar General (DG) and similar stores have prospered, especially in America's Midwest, Fred's never seemed to capture the magic formula. Nevertheless, at below $5/sh, Fred's seems like a value play. Alden Global Capital has made a substantial investment and appears to be holding major losses, but its presence could spur activism and perhaps break Fred's out of its complacency.

General Electric stock closed at $20.79/sh on Friday. The last time GE's stock saw such levels was in 2012. With a new CEO determined to turn the company around and already in cost-cutting mode, GE seems like a potential buy on weakness. 

Disclosure: I own GE and FRED stock. My positions may change at any time. Nothing herein constitutes investment advice or a recommendation to buy or sell any security. You are responsible for your own due diligence. 

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