Jim Regan

Wind Power: GE, China on the Rise

Great article, and I really like the fact that GE is being proactive about entering the "Ecomagination" arm of their business to buck the trend. It's going to be important for General Electric to keep ahead of the curve, in order to lock in the market on wind and other types of alternative energy.

Just a quick disclaimer, I am highly AGAINST investing in GE for anything along the lines of wind energy. Fact: GE is an industry leader in providing and developing alternative energy. Fact: GE will never trade anywhere near the alt energy trend. This is a company that is simply too big to invest in for any part of their business other than infrastructure (or capital solutions) at large. Check out this article I wrote a while back for a bit of the pro/con: seekingalpha.com/artic...

Again, great look into a new business. I don't mean to slam your thesis, just putting up a warning for anyone who might consider investing for an alt energy portfolio... there are better names to be had, and you might want to be considering an alt-energy ETF at that point.

The Bull and Bear Cases for GE

Thanks for the kind words Titus,

I am currently a sophomore at Penn State and run a company with a few of my colleagues at BullishBankers.com. If you like our stuff, we'd love for you to swing by and see our official community.

-Jim

On Mar 05 04:16 PM Titus Andronicus wrote:

> Good work Jim. GE wins long term! I think 2009 might be a little
> early. Time will tell. Just sold one of my houses and will invest
> most in GE throughout 2009.
> Please tell me thats an old high school photo of you. If not, you
> just changed my opinion of todays youth. Keep up the good work.

The Bull and Bear Cases for GE

I definitely agree with this, but you need to remember that the markets are largely trading on fear more than logic at this point. One other thing to point out (I wanted to keep the article concise) is that they don't mark to market most of their assets, as you have pointed out. I remember on their fourth quarter conference call, Immelt talked about their real estate portfolio. For one reason or another, everyone is concerned about this side of their business... but they are investing in real estate for the long run. They actually buy it to take money from tenants and improve the buildings... it's not stuff that they are flipping and buy/selling like a hedge fund or investment bank.


On Mar 05 01:05 PM The Mad Hedge Fund Trader wrote:

> I tink what is going on in GE is unbelievable. One out of five stocks
> in the S&P 500 has a single digit price. General Electric (seekingalpha.com/symbo...)
> hit the $5 handle. Amazing. This is a company that has $45 billion
> of cash, $60 billion in back up government financing, and has already
> rolled over 70% of its long term debt due this year. GE Capital will
> be profitable this year, because only 2% of its holdings are subject
> to market to market rules. CFO Keith Sherin says the only explanation
> for a share price that is a hat size is the rampant fear now sweeping
> the markets.

GE Says Smart Grid Equal to 41GW of Power Plants

As GE says on their corporate presentations for the Ecomagination team... "green is green!" It's really great to see them step up to the plate on the grid technology, and the 5% efficient improvement seems like a fantastic goal for the company.