Over the long term, I believe General Electric (GE) has the potential to double or triple in price this decade. Let me explain why. General Electric has a heavy influence across multiple industries that are tied in heavily to developing and recovering economies. It offers innovation and infrastructure support that is essential to every country and economy on the planet.
Its investment in energy, healthcare, technology and emerging markets will offset the current volume of debt in the near future. As the world economy and developing nations continue to grow, General Electric's value will eventually surpass its most valuable point in the market nearly 15 years ago. General Electric's services and business model is inundated in the evolution of human society and technology across the globe. General Electric's services drive the growth of civilizations and vice versa.
Right now the 50-day moving average for the stock price is right along with the current stock price of around $19, the moving average for the past 200 days is about $1.25 less. The 52-week range is from $14 to $21, the beta is over one but with increasing energy revenue in the past quarter I feel the management has GE on the upside rather than the downside. The market cap is over $200 billion and the all-time high on the market for General Electric is around $60 per share. The total debt to cash flow ratio is one of the major factors keeping this stock price so low; debt exceeds $430 billion while cash flow is under $85 billion, operating cash flow is under $35 billion. The upside here is that General Electric is investing heavily in building infrastructure and employment opportunities domestically and in emerging markets as well as developing countries in Africa. The sheer size and innovative applications of General Electric is enough to help it sustain the current price per share while providing ample opportunity as its presence and earnings grow in international locations.
One of the most important aspects of General Electric's business model is its aggressive yet candid management style along with the symbiotic relationship it has with its partners and operational regions worldwide. A prime example of its positive influence in society can be seen in Houston, Texas. GE's presence in Houston, Texas has directly and indirectly supported a vast number of jobs for a variety of different types of professionals. GE announced in early May that it will be investing $10 million in a new oil and gas training facility in Houston that will benefit service and technological advancement for customers and create jobs for more than 100 new workers. Recent studies cite that GE directly and indirectly supports more than 26,000 jobs in the state and generates $5.6 billion toward the state's economy per year.
The new site is set to be GE's premier oil and gas training facility in order to focus efforts on the growth of its Drilling Systems business in the city. The drilling site currently employs more than 600 people and exports around 70 percent of the manufactured products. GE has a total of 30 locations that employ around 6,000 people amongst the nine different business units it runs in the Houston area. The new site will employ a variety of electrical and mechanical engineers in the city of Houston. GE has also contributed almost $4 million toward local community and non-profit organizations in the area. Focusing on investments in the energy sector in the United Sates and abroad will be the main catalysts for GE's continued prominence into the future.
GE has several promising activities across the globe that will help raise its value in the markets over the next few years. GE focuses on making positive impacts on a macro level that benefit regions and its own interests for decades if implemented as planned. GE has been involved in providing Poland with wind turbines to help the country improve its energy resources that benefit both the economy and environment as well. GE provided 32 wind turbines in 2011 and will provide 38 turbines for four different projects in northern Poland later this year.
Phase two of this wind energy plan will be the first to feature GE's 2.5 megawatt wind turbines that are heralded as some of the most powerful in the industry. The wind turbines industry is rapidly growing, GE is still the dominant provider with 40 percent of the market share in the United States in comparison to its nearest competitors Vestas Wind Systems (VWSYF.PK) at 19 percent and Siemens A.G (SI) at 11 percent. GE has the most turbines worldwide with 16,500 units installed.
GE has also started a joint venture with Shenhua Open Cleaner Coal Technology to create a GE Shenhua Gasification Technology Company Ltd. This new organization will have these two innovators in gasification and coal manipulation working together to create cleaner more efficient energy from coal in China. This is also an opportunity for the GE and the large energy Chinese organization to exchange and develop new innovative technology to combat energy scarcity in the world. GE has also established a contract with the Nigerian government to invest $10 billion over a five-year period in order to provide its electricity distribution service package in different regions throughout the country.
Aside from the various macro international interests, GE is also investing in improving its position in the healthcare industry. It recently acquired Xcellerex to improve its services involved with manufacturing biopharmaceuticals like vaccines, antibodies and recombinant proteins around the world. The healthcare industry will prove to be extremely profitable and expansive as more countries urbanize and begin to develop throughout time. This latest acquisition will improve GE's portfolio by allowing it to work with more organizations to help improve living conditions in third-world countries while fighting evolving illnesses as well. These are just some of the investments GE has made recently. Being a provider for major corporations like Chevron (CVX) and various countries around the world ensures that GE has no true competitors as it extends through nearly every major industry from cloud computing with Cisco (CSCO) to energy or healthcare or even in financial services like Citigroup (C). The market price will begin to reflect GE's true value with time; I believe GE's best days are yet to come.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.