General Electric - 2007/06/15 16:24
As the developing world economy continues to grow faster than the U.S. economy large, multinational firms stand to benefit from the increased business from these developing nations. GE is a global infrastructure play, with its infrastructure business that provides the goods that developing nations need. Also, the USDOE predicts a 40% increase in the need for energy by the year 2025. GE also provides the tools necessary to meet this demand with the next generation Nuclear BWR, clean coal technology and alternative energy methods.
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admin
Re:General Electric - 2007/06/22 00:34
Joe, I think GE is a great core holding in any portfolio. They are highly diversified and hold up well in any type of market downturn. My question for you is how much of their current revenue and income is due to their energy unit?
I think a nice feature of GE is the dividend growth, although not necessarily large, the dividends are growing and add that onto a company that is involved in such high growth areas as energy and the coming energy "crisis" in the coming years, I believe that GE is really attractive at these levels.
My only concern is that GE is a $400 billion behemoth, how fast can you grow a company that big? But, I guess they have done it for 100 years, I might be underestimating them.
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j.g.mussey
Re:General Electric - 2007/06/25 00:05
Bryan,
If you look under the valuation spreadsheet at the different tabs you will see the answer to you question. I have broken GE down into all of its segments and show common size statements, growth and profit margins. GE Infrastructure has been around 30% of revenues over the last 5 years, and the energy division is around 40% (including financial services of energy) of the GE Infrastructure branch. Also, yes I find it interesting that they have sustained that high level of growth for their size. I feel we can attribute that to their policy of selling off any units that are under performing (Plastics for instance) and as a result I am confident that GE can grow at 9% + levels year over year for the foreseeable future.
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