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Re: None

Tuesday, 01/09/2007 7:48:14 PM

Tuesday, January 09, 2007 7:48:14 PM

Post# of 585
DD post #1--GE

If you are not somewhat familiar with GE, you probably are a spy for the Taliban, a real 14th Century kind of guy or gal.

The reason that GE is my pick is simple--I'll look like a genius when it triples in 2007. Seriously, the reason I have picked GE is that

WE ARE IN THE AGE OF CRAZY GLOBAL DEMAND FOR ENERGY,

and GE is setting itself up as the 800-lb. gorilla of energy.

I'll keep this first post short. GE just announced that it is going to buy OIL SERVICES company Vetco Gray, Inc., for $1.9B. It is privately held.

I'm getting this info from an AP article, by the way.

Vetco Gray is into drilling, completion and production equipement for oil and gas fields. Vetco has centers in Houston, the U.K., Norway and Singapore. It should contribute $1.6B in sales to GE's top line.

GE's oil and gas business did $3.6 billion in sales in 2005. Obviously, Vetco Gray will provide a nice increase in that business.

Guy's like 10bagger would like Vetco Gray because they sell equipment used in deep-water drilling.

One analyst said this acquisition gives GE a "solid global presence" in the o&g services industry. The deal should close early in 2007.

THIS IS WHAT REALLY TURNS ME ON ABOUT GE. I constantly worry about owning companies whose sales are pegged to the U.S. dollar. GE expects to generate more than 1/2 of its revenues from outside of the U.S. in 2007. This would be a milestone.

End of first dd


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