One of the problems with running a conglomerate like General Electric Company (NYSE:GE) is that it’s a conglomerate. It’s a massive combination of business is, in a difficult task for any CEO to keep all the parts moving and growing. Regrettably, GE stock went off the rails under Jeffrey Immelt, and is now in a real pickle. GE stock has lost almost 60% of its value and I don’t think the damages done ye

However, once we do see a bottom in GE stock, which I think will be around $10 a share or possibly a little higher, that mute be the time to enter for trade.

One thing that GE stock does have going forward is that the economy is not only improving, it is dramatically improving. The Trump tax cuts and his economic policy in general are pushing GDP above 3% growth. In the case of GE stock, that’s a great thing because, it’s a conglomerate! Many different businesses are going to benefit from this.

So if one is going to argue for a near or long term bottom for GE stock, that might be the first place to start.

A Look at GE’s Future

However, let me put a fork in one of the theories floating around regarding the power unit at GE. There some discussion that the renewable energy investments the company is making is going to be some kind of saving grace for are horrible.

I don’t care if were talking about wind power or solar power. There’s a reason why so many wind turbines are creaking and rusting out in the middle of nowhere. There’s a reason why Tesla Inc. (NASDAQ:TSLA) and Elon musk bailed out all of his crony partners at SolarCity. Renewable energy is not a moneymaker.

Let me also kill off the idea that Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.B) is going to invest in GE stock. While Buffett is made some moves recently that I don’t think were bright, I think he is smart enough to recognize a flailing company when he sees one.

Let’s remember that Buffett did drop $3 billion into GE preferred stock during the financial crisis. However, this deal was exceptionally in Buffett’s favor. The preferred stock paid 10% interest annually in perpetuity.

GE recognized what an extortive deal it was and repurchased that stock at a 10% premium. Now GE is in a pickle once again, but the circumstances are slightly different. During the financial crisis, GE is a company was doing much better. It just needed an infusion of capital.

Now, however, it still needs an infusion of capital but the company itself has tremendous underlying problems. Frankly, this is more move for Carl Icahn, and his Icahn Enterprises L.P. (NYSE:IEP). If anything, GE more resembles a distressed asset situation.

The Bottom Line on GE Stock

So what is the play for General Electric stock? I think there is a bottom at $10 per share, the same bottom reached during the financial crisis. I think buying below $11, and holding for some kind of trade makes some sense.

There may be 10% to even 30% upside, if some kind of catalyst drives GE stock higher, even if it’s a rumor that Buffett or Icahn or someone else is going to put money into the company. I don’t think you should expect a turnaround anytime soon.

That being said, at $10 a share buying and holding for a few years for at an actual turnaround to take effect may provide a decent risk/reward scenario.

Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance and is the Manager of The Liberty Portfolio at www.thelibertyportfolio.com. He does not own any stock mentioned. He has 23 years’ experience in the stock market, and has written more than 2,000 articles on investing. Lawrence Meyers can be reached at TheLibertyPortfolio@gmail.com.