You've been hearing about them all over the place, or at least you should have. General Electric Co. (NYSE: GE) has again made a series of brilliant and timely moves. On Monday Jan. 8, Melly Alazraki wrote to tell about the GE buyout of Vetco Gray. The company bought the maker of energy resource exploitation equipment for a tight $1.9 billion. The cost of that investment by GE should be fully returned in less than two years.
General Electric has utilized its collaboration with General Motors Corp. (NYSE: GM) on GM's new Volt electric automobile to add premium value to its plastics division before auctioning it off. Does it come as any surprise that the announcement of GE's plastics sell off is perfectly timed with the debut of this ground shaking new car? It is expected that the GE plastics division will auction for as high as $10 billion. Some analysts are claiming that price may go even higher.
General Electric has announced that an agreement has been reached for its pending acquisition of Microwave Data Systems Inc. This acquisition will give GE a more deeply penetrative position in wireless infrastructural and consumer service monitoring systems. GE is continually expanding its reach in the areas of energy conservation and innovation. This purchase will give GE quick growth opportunities and increased depth in the industrial wireless market segment which is expected to grow at a rate of 15% this year.
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Reader Comments (Page 1 of 1)
1-11-2007 @ 10:58AM
Gilewicz said...
Can anyone explain how the 1.9 billion investment for Vetco Gray will be returned in less than two years? With revenues of just $1.6 bil/year it would take a free cash flow of something like 50% to accomplish this. Does Mr. Sattler have some numbers like that on Vetco's cash flow or earnings?