General Electric (GE) Ben Hsu and Eric Lin. Background One of the largest and most diversified...

General Electric (GE)

Ben Hsu and Eric Lin

Background

• One of the largest and most diversified companies in the world

• Incorporated in 1892 when Edison General Electric Company and The Thomson-Houston Company combined

• 320,000 employees• CEO: Jeffrey Immelt• #5 on the Fortune 500

Sources for revenue• Conglomerate– Energy infrastructure• Development of products

to harness natural resources

– Media• NBC Universal

– Technology infrastructure• Transportation, healthcare,

etc. infrastructure for developing countries

Sources for revenue

– Finance• Offers financial

services, lends money

– Consumer and industrial products• Manufactures aviation

parts, consumer appliances, electronics, etc.

Buy Recommendation

• Buy at current price • Sell Limit order at 20.00

Stock Quote• (As of 3/16)• Stock Price: 17.69• 52 week: 9.26 – 18.16• Market Cap: 188.75 billion• Beta: 1.52• # Shares: 10.67 billion• EPS: 1.03• Dividend: .10• P/E: 17.23

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Major Competitors

• Siemens• 3M Co.• Honeywell International• Comparison– Larger market cap– Has grown more in last year– Much more diversified than competitors

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Why should we buy?

• GE is very diversified• Earnings release on 4/16-.16– Easy to beat

• “Green” energy is booming• Upward trend• Superior to competitors– Larger and more diversified

• Dividends expected to grow• Economy is starting back up

Why buy?

• Is considering to buy part of Royal Bank of Scotland– This means they are expanding

Links

• http://www.google.com/finance?q=NYSE:GE• http://www.google.com/finance?q=SI• http://www.google.com/finance?q=MMM• http://www.google.com/finance?q=HON• http://www.google.com/finance?q=NYSE:UTX