GE Stock Has Multiple Positive Catalysts, Favorable Valuation
by Larry Ramer
Summary
GE stock should benefit from multiple initiatives brewing in Washington.
The company has significant leverage to the rapidly growing wind energy and Internet of Things spaces.
GE stock looks like a very good buy at current levels.
The conglomerate's decision to buy Alstom, which develops coal-fueled turbines, for $9.5 billion and oil exploration company Baker Hughes' technical services business, have left it highly exposed to fossil fuels.
"Perry’s proposed rule would pay coal and nuclear plants to remain on the electrical grid in the name of resilience. Experts say it would virtually assure that coal and nuclear plants...remain profitable."
Increased drilling in the U.S. should significantly increase demand for Baker Hughes' products and services.
A number of GE's divisions could be boosted by an infrastructure plan.
GE would be one of the biggest winners from tax reform.
GE’s onshore wind unit obtained over $3 billion of orders in the fourth quarter of 2016.
Apple (NASDAQ:AAPL) recently chose to partner with GE on an Industrial Internet of Things platform definitely suggests that GE’s technology in this area is quite strong.
Source: Seeking Alpha
https://seekingalpha.com/article/413493 ... ngcom_feed