General Electric

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General Electric
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General Electric (NYSE GE)

• Made up of 5 primary businesses
• GE Energy Infrastructure
• GE Technology Infrastructure
• GE Capital
• NBC Universal
• GE Consumer Industrial

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What do they produce?

• Energy
• Nuclear reactors, wind turbines, hydroelectric
  generators, solar panels, coal power plants
• Transportation
• Locomotives, airplane engines
• Other
• Washers, dryers, phones, cameras, light bulbs
  (consumer commercial)

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Why GE?

• Global energy demand projected to grow by 50 by
  2030
• Developing economies around the world China,
  Brazil, etc.
• 1 in Engine, Turbine Power Transmission
  Equipment Manufacturing in the US (25 market
  share)
• Source IBISWorld, Engine, Turbine Power
  Transmission Equipment Manufacturing in the US,
  2008.

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Other Important Industries

• 2 in Train, Subway Transit Car Manufacturing
  in the US (17.6 market share)
• 2 in the Electrical Equipment Manufacturing
  Industry (7.7 market share)
• 1 in Television Broadcasting in the US (19
  market share)
• 3 in Aircraft, Engine Parts Manufacturing in
  the US (10.2 market share next to Boeing and
  Lockheed Martin)
• Source IBISWorld, Various Reports, 2008

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Innovation

• Filed for 2200 patents in 2008
• Annual RD Budget of 6 billion
• Leader since 1878

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By the numbers

• 8.51 recent closing price
• Market cap 89.97 billion
• Earnings per share - 1.79
• Price-earnings ratio 4.75
• Recently cut dividend to 10 cents per share
• Conserve capital in recession, maintain AAA debt
  ratings
• 4.7 dividend yield
• Good record of raising dividend every year
• Find yields above 4 attractive
• Target purchasing price 7-8

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Conclusion

• GE Energy Infrastructure will grow with global
  energy demand
• GE Consumer and Industrial will grow with
  economic development
• GE Technology Infrastructure will grow as
  transportation needs rise
• GE Capital will grow with the economy as it turns
  around
• Bottom line GE will grow

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Discussion