It's mini-camp time. The point of mini-camp is to help players and coaches in the National Football League to get acquainted with their playbook and with each other. In the end, it's all about assessing value, and I've found value in my pick today,
General Electric (GE).
In football, it's the coaches' first chance to size up their new players and get a glimpse of their multi-million dollar off-season investments. At this time of year, most teams are full of hope that their first-round picks in the recent NFL amateur draft will turn out to be worth every penny and that they managed to find hidden gems buried in the later rounds as well.
In Miami, all eyes will be on offensive tackle Jake Long. In St. Louis, defensive end Chris Long will be the center of attention. Atlanta is banking on quarterback Matt Ryan. You get the idea.
While the high-profile picks are in the spotlight, the truth is that many lesser-known players in camp won't make the final cut for the opening day roster. The evaluation period is part of the business of sports. You are either an asset or a liability.
Content Continues Below
However, the season doesn't start for months and the mini-camps are generally only a few days long and filled with non-contact drills. There's a lot more work to be done before prime time and few major decisions are made this early on. Eventually the cream rises to the top.
I have found that there are many parallels between the player-evaluation process and picking stocks. Essentially, you must look at where a player or stock is currently at and then determine both its potential and downside. Once you determine that, you can set expectations and move forward.
Today I'm drafting GE to my portfolio. I think it has tremendous upside, and equally as important, it has found a bottom.
About a month ago, GE dropped the ball. The company
reported disappointing first-quarter earnings and was forced to revise its projections for the rest of the year. For a company that hardly ever misses its numbers, this was a shock and investors dragged the stock down significantly in the following days.
The stock has only risen slightly since it hit its 52-week low of $31.55 in April. However, it hasn't really moved all that much since. It closed at just $32.33 on Monday. GE, which just announced a deal to sell eight natural gas-powered generators to Iraq, is a great company that should produce for you.
I believe those that cut GE from their portfolio made a mistake. Their decision was premature and this stock will keep gaining ground, chewing up yardage and making investors money.
"Keep moving the Chains!"Know What You Own: GE operates in the life conglomerates industry, and some of the other stocks in its field include
Siemens (SI),
Koninklijke Philips Electronics (PHG) and
ABB Ltd (ABB). These stocks closed at $116.41, $37.60 and $32.06, respectively. For more on the value of knowing what you own, visit TheStreet.com's
Investing A-to-Z section.
© 1996 -
2008 TheStreet.com, Inc. All rights reserved.
Most Read Articles from TheStreet.com
Stocks With Insider Buying, Buybacks: CVS
Large repurchases make CVS and Lexmark stocks to watch.
Kodiak Joins 'Stocks Under $10' Watch List
The main catalyst for the oil and gas company lies in the Bakken Shale play, located in the Williston Basin of North Dakota and Montana.
Cramer on Top-Searched Stocks: Joy Global
Joy Global is among the most-searched stocks on <I>TheStreet.com</I>. Here's what Cramer had to say about it recently.