Dell Inc. (DELL), First Solar, Inc. (FSLR), General Electric Company (GE): These Three Stocks Could Go Undetected by the Masses

Believe it or not, GE could be put on the list

In a previous article, I tried my best to break down the growth opportunity of General Electric Company (NYSE:GE). The company is planning to spin off General Electric Company (NYSE:GE) Capital from General Electric. If General Electric was to commit all of the cash that was set aside as loan loss reserves, the company could generate even more substantial returns on investment.

I encourage investors to read the full break down of the predicted outcome of the M&A. Now of course, in the real world there are many ways to do a corporate spin-off, but I chose the simplest way to analyze an IPO spin off.

As a result of the spin-off, General Electric Company (NYSE:GE) would be able to free up $61.9 billion in capital. If the cash is invested at a 20.22% return on capital, the company could contribute an additional 7.5% per Annum to its long-term growth. Analysts projected 11.03% earnings growth, and adding in the 7.5% additional growth will increase GE’s growth to 18.5%. This means that General Electric Company (NYSE:GE) (the parent company) is extremely undervalued. This all assumes, of course, that General Electric Company (NYSE:GE) spins off GE Capital and successfully invests its $61.9 billion at a 20% return. This could be difficult to accomplish.

Conclusion

There are many kinds of investment opportunities in the stock market. Sometimes a stock has a blatantly obvious “buy” signal. This time around, however, I hoped to summarize three investment opportunities that are likely to go undetected by the masses unless you get out there and do some digging.

The article These Three Stocks Could Go Undetected by the Masses originally appeared on Fool.com and is written by Alexander Cho.

Alexander Cho has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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