Continue reading Closing Bell: A 1,000 S&P scares the bears (AMZN, XOM, EXPE, GE, HOG, SYMC)

Closing Bell: A 1,000 S&P scares the bears (AMZN, XOM, EXPE, GE, HOG, SYMC) originally appeared on BloggingStocks on Thu, 30 Jul 2009 16:00:00 EST. Please see our terms for use of feeds.

I estimate that General Electric Company (NYSE: GE)'s GE Money segment is worth between $46 billion and $48.9 billion -- down 10.6% at the high end -- compared to last July's range of $29.6 billion to $54.7 billion.

GE Money provides financial services to consumers and retailers in 50 countries. GE Money offers private-label credit cards; personal loans; bank cards; auto loans and leases; mortgages; corporate travel and purchasing cards; debt consolidation; home equity loans; deposit and other savings products, and credit insurance.

GE Money had a great 2007. Its 2007 revenues and net earnings increased 26% and 31%, respectively, compared with 2006. Revenues in 2007 included $0.4 billion from acquisitions. Revenues in 2007 also increased $4.8 billion as a result of organic revenue growth ($3.5 billion) and the weaker U.S. dollar ($1.4 billion).

Continue reading Valuing GE Money

Valuing GE Money originally appeared on BloggingStocks on Wed, 27 Feb 2008 17:15:00 EST. Please see our terms for use of feeds.

Next Tuesday I am scheduled to meet with General Electric Co. (NYSE: GE) Chief Financial Officer Keith Sherin to discuss GE's performance and prospects. This meeting came at the company's initiation.

As a GE shareholder I have not been thrilled with the performance of the stock. Since September 7, 2001 when current CEO Jeff Immelt took over, the stock has risen 3% from $39.60, compared to a 40% increase in the S&P 500. Moreover, on the basis of its Price/Earnings to Growth (PEG) ratio of 1.5 -- based on a P/E of 19.5 and earnings forecast to grow 13% to $2.50 in 2008 -- GE looks somewhat overvalued to me.

So here are some questions I plan to ask:

• Since the current GE CEO took over, GE stock is up 3%, compared to a 40% increase in the S&P 500. Why has GE stock underperformed this average?
• GE stock has risen 23% in the last year, however, it trades at a PEG of 1.5 which makes it a bit expensive. Why should investors buy GE stock now?
• Since the Healthcare, Industrial and NBC Universal segments all saw revenues fall in the first half with relatively weak profit performance, why doesn't GE sell these businesses and invest the proceeds to increase its market share in the more financially successful Infrastructure and Commercial Finance units?
• If GE chooses to stay in Healthcare how will it offset the negative impact of the federal government's decision to cut reimbursements to nonhospital imaging centers?
• Under Jack Welch, GE's philosophy was to only be in businesses in which it could be #1 or #2. Recently NBC was ranked the 4th most watched network. Will GE sell NBC? If not, why is GE keeping NBC? How does NBC's coordination with other GE divisions increase GE's overall revenues or lower its costs?
• How vulnerable is the GE Money unit to an increase in consumer loan defaults? Is GE Money likely to experience accelerated revenue and profit growth in 2008 or slower growth? Why?
• What impact would a 10% decline in the dollar have on GE's Earnings Per Share (EPS)?
• What other external factors -- such as an increase in interest rates or a rise in energy prices -- represent the biggest risks to GE's EPS? How do you quantify those risks?

Please let me know which ones you'd like to add to the list.

Peter Cohan is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He owns General Electric stock.

What questions should I ask GE's CFO? originally appeared on BloggingStocks on Fri, 20 Jul 2007 11:00:00 EST. Please see our terms for use of feeds.

General Electric Co. (NYSE: GE) reported very strong earnings last week of $0.44 per share, versus $0.40 for the same quarter last year. This company is so large and so diverse that it has been compared to herding cats. So many moving parts and somewhat dependent on global growth as opposed to just United States growth. CEO Jeffrey Immelt has stated the goal to grow earnings at 2-3 times the global GDP -- that's global!!

General Electric's stock price is sitting right at the mid-point of its 52-week range. At Friday's closing price of $35.38, it's $3 above the 52-week low, and $3 above the 52-week high. If GE continues to maintain double-digit percentage earnings growth, investors will begin to chase the shares back up to the high side of the 52-week range. Immelt has pressured his multiple businesses to perform and perform now.

General Electric is focused more on building existing businesses rather than expanding through acquisitions or joint ventures. GE will focus this year and next on the lucrative finance units. GE Capital is the goose that lays the golden egg; it's predictable and fairly high margin. Also, GE Capital and its subsidiaries are global in reach and scope. The commercial finance division is making a strategic and profitable acquisition in Japan. It's all about the margins.

GE pays a healthy and handsome dividend of $1.12, representing a 3.2% current yield. Investors look to GE for its current yield, but if GE can maintain a steady 10% growth rate for revenues and earnings, the shares will only accelerate from here.

Many institutional investors think GE is a bit undervalued at this price level, due to the expected margins gains from GE focuses on the capital lending business. They are probably correct and GE is a buy here for conservative growth accounts.

Georges Yared is the CIO of Yared Investment Research.

Is General Electric now a Growth Story? originally appeared on BloggingStocks on Mon, 16 Apr 2007 14:36:00 EST. Please see our terms for use of feeds.

General Electric Co. (NYSE: GE) posted an in-line first quarter. As expected, GE Infrastructure did well and NBC Universal did poorly. The company also was hurt by the meltdown in subprime mortgages.

8:30-- Introductions

Jeff Immelt:

The broad strength of GE, lead by. If you at our inf business, we are in the very early phase where we have high visibility, broad technology, increasing backlogs. We are in the first inning of a nine inning game in Inf. What you saw in this quarter is repeatably.

Had a couple of speed bumps. WMC. health care. Despite those bumps , we delivered good quality earnings. We are a safe..going to deliver 10 to .12. The environment that we see today. We think the global markets are good, capex is leveling, Housing is a "challenge."

Emerging markets are very strong, Inf investments continue. Our env programs. The margin environment is as expected. Driving pricing in long-cycle business.We're well positioned globally. our pricing is ahead of inflation.

We've got a st. The economy is what we expected. We feel really good on how the company is position.

John Rice-Infrastructure.

We saw strength in all of our business. took orders for 33 gas turbines, many of them were international. Oil and gas business had strong orders. "We're starting to see more action in the United States in terms of inquiries>" All in all the business is very strong.

Keith Sherin, CFO

The headline .23.6 bln in orders.

The absolute level of orders continues to be extremely strong. The future outlook continues to be very strong.

The transportation outlook for the year is fantastic. Backlog is up 30 percent from a year ago. When we look for. The current outlook is 20 percent increase for orders of major equipment. Total orders are expected to be up 15 percent in the second quarter.

Continue reading Live Blogging General Electric 1st quarter earnings

Live Blogging General Electric 1st quarter earnings originally appeared on BloggingStocks on Fri, 13 Apr 2007 08:25:00 EST. Please see our terms for use of feeds.

GE after the bell 10/25/06: A case for investing green thought GE originally appeared on BloggingStocks on Wed, 25 Oct 2006 18:05:00 EST. Please see our terms for use of feeds.

Continue reading GE's Jeff Immelt webcast on GE's state and looking forward

GE's Jeff Immelt webcast on GE's state and looking forward originally appeared on BloggingStocks on Wed, 24 May 2006 15:47:00 EST. Please see our terms for use of feeds.