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Oscar Sunday: And the Oscar goes to....

Today is Oscar Sunday and I am betting that Slumdog Millionaire is going to win Oscar in following categories:

  1. Best Picture
  2. Best Director
  3. Best Screenplay
  4. Best Original Score
  5. and maybe 1-2 more

The story is quite touching as well as entertaining and also have a mix of bollywood (with songs) as well as typical British narrative. It would be fun to watch today's Oscars

Last few weeks were horrible in terms of my stock picking - I am almost tempted to suggest not to buy anything at this moment but that's like not making any calls. So let's get to stock pick of the week:

Company: General Electric (GE)

Buy Price: $ 8 to $ 9

Target price in 12 months: $12 to $ 14

Company Background:

This company does not need any introduction since it is one of the most known company around the world with businesses in any sector we could think of. My logic behind picking GE as stock of the week is for following reasons:

  1. History of surviving through 125 years of ups and downs which had a great depression and 2 world-wars along the way
  2. Solid AAA company with yields over 10% ($1.28 dividend every year). Even if company cuts dividend by 50% to protect its AAA, the yield would still be near 8% at $8-9
  3. Every company aspires to be like GE with its solid management and financial track record
  4. Not too long ago, it was one of the most valued company on the planet and now it's total market cap is below $100 B
  5. This would be one of those times when blue chip like GE is on sale. When you can buy GE at 40% of what Warren Buffet paid (he has warrants around $22), I don't think one can go much wrong.

Be careful and slow in buying since in short run it could go below $8. However as long as you are in this stock for long-run, you should be OK

Good luck and enjoy the Oscars !

/Shyam

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