General electric takes its light out from under the bushel basket – general electric company (nyse_ge) _ seeking alpha


General Electric Company (NYSE: GE) has announced an increase in its dividend payments for 2017 and that raises my estimation of its value enough that the current market price of just below $30 is in my buy range.

In a previous article on GE, I decided that GE had a bright future, but was a little too pricey to purchase at the time. Butterfly quotes about life It’s at about the same share price now. Hex to binary file converter Has the latest earnings report shown that it is on the bright path I predicted and has its resumption of dividend increases changed what I see as the value of the stock?

As I have said in other articles when evaluating whether or not a company is a good investment partner, one of my implicit requirements is that the company wants me as an investor. Dollar exchange rate to peso Part of showing me that GE wants me to be an investor, is that GE makes that case for itself.

Silver chart 1 year So I look for the information I want on the GE website, and I see a lot of it in this presentation. Futures market wiki Read the whole thing, but below I will show the slides that best address my 4 checklist items. Exchange rate pound us dollar My four checklist items are:growing markets, growing earnings, responsible handling of debt and growing dividends. Stock market futures I evaluate each in order, as each item is dependant (some more than others) on the items that preceed it.

This first slide is important for a number of reasons. Dollar to yen exchange rate today First, while GE is a global company with products in lots of different categories, the US economy is still a big driver for their results. Euro to us dollar exchange rate today So a growing US economy gives GE lots of opportunities to grow.

I also like the recognition that two new technologies that GE is working on, have a large role in GE’s plans to grow its markets. Canadian dollar indian rupee exchange rate I like the recognition that a new technology and a new acquisition will be used to generate improvements for the whole company as well. Futures stock market definition I like to see that management is tying specific actions to its pans to grow its markets.

GE still has plenty of room to grow in the global economy, and I like that they recognize that too. Love quotes for boyfriend tagalog The final item, while it doesn’t address my market checklist item is also important in establishing an EPS target for 2018.

This next slide shows that management has identified GE’s strengths and plans to build on them to grow market share. Binary quiz In looking for data to address my checklist item on growing markets, I want to see that the company has focused its efforts by identifying what strengths it brings to the table. Euro to pound exchange rate forecast Sure a lot of companies do that, but its an important step for building a plan to grow market share, and not all companies make the effort to present this data to the investors.

I like how they have also pointed out that their oil and gas division is going to face significant headwinds over the next 2 years, and that their planned growth targets will be hit anyway. Convert inr to usd If the price of oil and gas does improve over the next 2 years, they are just than much further ahead.

This next slide shows that GE is going to focus on their Digital Service market. Usd in euro rechner Digital Service is a good market to be in because that is all software. Idr to usd converter With hardware a significant cost in fixing or upgrading some component is the cost of the new hardware. Usd to rmb chart With software, you only pay that once, upgrading the second customer has very little additional cost. Us stock market futures real time I know from doing software fixes and upgrades that once we made the software changes for one, it was basically the cost of a DVD disk and the cost to ship it to update any other customer. Binary code translator to english I see a focus on this area as a good sign that GE is working to increase its earnings by focusing on growing highly profitable projects and working to keep and even increase its competitive edge.

Simplifying the company is great because it reduces over-head, but the item I find of most significance is the reduction in GE Capital. Us dollar exchange rate indian rupee During the financial crisis, GE showed they knew how to manage their industrial production businesses and showed that was far less capable with GE Capital. What are stock market futures Getting out of that business, and directing the cash to other better opportunities is good for the future of the company. Binary words I think identifying areas where the company doesn’t have the expertise to generate consistent profits is as important to growing earnings as finding areas where the company can grow earnings consistently. Ucsd my chart Reducing GE Capital to just helping industrial customers finance their purchase of GE goods and services is the may to go in my opinion, and I am glad that I see progress on that front that this slide presents.

This slide shows that GE has in the past managed to grow the industrial side of the business, and that despite large investments in the area GE has also grown the margin. Text to number converter In an area that requires continuous investments (although not always as heavy as the 2011-2015 period), I like to see that the company can still grow its margins, and thus its profits. 1 usd to ils This slide addresses my requirement that the company has a history of growing its profits.

This slide show that management has identified growth drivers in its various segments. Exchange rate usd inr In order to grow for any length of time, I think its important that for a company to identify what things drive growth. Decode binary That way, the company is able to focus on doing a better job in those areas and can focus capital spending on the right things that will result in growth. Usd mxn All too often, I see companies wasting their resources by spending money on areas that are flashy, but don’t really help the company grow. Python example script GE has identified these growth drivers, as the first step in a plan to grow the company.

This next slide shows GE’s plan to grow its Services business. 1 usd to inr in xoom Talking about my first article with a longtime friend who works for GE, he said that Services is one of their biggest revenue areas and very profitable. Binary translator So I like to see that management sees this area as needing specific attention. 100 usd to eur More growth in the Services segment, especially in software, is a profitable area for GE to generate more revenue and earnings.

These last 3 slides address GE’s plan to turn the company around. 99 usd GE has struggled of late and I wanted to see that the company still has a plan and focuses on that plan to turn the company around. Usd nzd exchange rate GE certainly has plenty of technical leadership, and focusing on growing that is in my opinion important to keeping GE as a profitable growing company. Fundamentals of futures and options markets pdf 8th I also think that it is smart to use the fact that it has such a large number of business segments that have developed technologies over the years, to share that technology with other divisions within GE. Famous quotes by famous people These slides indicate to me that GE is still maintaining focus on turning the company around and moving it forward.

These slides, as well as the whole presentation, addressed my 4 chcecklist items. Eur usd rate Based on this, I am comfortable that GE has positively addressed my 4 checklist items and shown that it as a dividend growth investor, it is a partner I can invest my money in.

On interesting news item has the NRC making progress towards issuing a license for a GE reactor at the Lake Anna nuclear plant. Euro to inr chart That is promising for the GE Hitachi unit. Eu to usd I find it of interest because I live about 40 miles north of the plant.

While the report of 4Q of 2016 had some significant disappointments, especially on the revenue side, Immelt was pretty confident that GE could hit is 2017 targets.

“To recap the year, we finished in line with what we saw in December and within the range for the year. Dollar vs rupee exchange rate today Overall, earnings per share was a $1.49, in line with consensus; organic growth was 1% for the year; and margins of 14% were at the low end of our range. Usd to inr exchange rate history Corporate and Alstom were in line with expectations; foreign exchange created $0.03 per share of headwind for the year; and we launched incremental restructuring which again failed to fully offset, and this created $0.02 of headwind for the year. Exchange rate ksh to usd We met or exceeded most of our cash targets; at $32.6 billion, free cash flow plus dispositions were in line with our December outlook.”

To figure out a good price, I do a DDM calculation using my Excel® based DDM calculator (pictured above, you can see the web-based calculator I based it on here and read a discussion on how the formulas were developed here).

GE has now actually increased its dividend by 4% and it has a EPS growth target of 4%+. Gender roles in society today If it gets an even remotely reasonable price when it buys shares back, it will reduce total dividend outlay by enough to easily grow the dividend 4%. Exchange rate usd eur I still think that long term it should be able to grow its earnings and thus its dividends at near inflation or about 3%. Convert cad to usd I still want twice the long term inflation rate for growth in my income, so I will use 6.4% as my discount rate. Gender inequality research paper Also, unlike when last I wrote about GE, it has increased its dividend and did it earlier than I expected, so I no longer need an additional discount to mitigate that risk. Pound dollar exchange rate today I calculate the PV of the future predicted dividend payments as $30.43. How does the oil futures market work Thus my buy price for GE is $30. Pound usd forecast And today (Monday, January 23, 2017) the market seems to be accommodating me, as the current price is below $30.

For a cash secured put, I like the February expiration date with a strike price of $30. Eur usd candlestick chart The strike is right at my target price and with a bid of $0.59 the premium is about 60% of the full year dividend for holding less than a month. Usd to malawi kwacha With a Delta of -0.55, you have a decent chance of getting the shares assigned to you.

For a covered call, the March expiration dated call with a strike price of $31 looks to have some potential. Words to binary You can get paid a premium of $0.16, which is the pro-rated amount of the dividend for 2 months. Commodity meaning in tamil With a Delta of 0.22 the 22% or so risk that the shares might be called away is workable.

GE has resumed its dividend increases, and shown another quarter of progress in turning its business around. Cattle futures market prices Its future looks as good today as it did when I wrote my first article on the company. Usd aud forecast That proven performance has upped my valuation of the stock, so now it is in my buy range, despite trading at a very similar price when I first concluded that it was too expensive.

Note: I hope you all got something out of this article. Ashley furniture store credit card I do appreciate the time you took reading it. Nzd usd exchange rate If you are one of those who follow me here, I appreciate it; if you’d like to include yourself amongst those individuals, please hit the “Follow” button next to my name as well as following other contributors whose work you enjoy. Aud to usd forecast 2016 As always, please leave any feedback and questions you may have in the comments below.