General Electric (GE)

Buy PresentationSeptember 22,

2011

Provides technology and financial services 100 counties served

5 Business Segments: 1. Energy Infrastructure 2. Technology

Aviation, Healthcare, Transportation 3. NBC Universal

51% stake 4. GE Capital

Financial services, loans, credit cards 5. Home and Business Solutions

Appliances

ENERGY: Acquisitions, HD gas turbines, solar power

OIL AND GAS: Subsea

CONSUMER: Eco trends, “Green” lighting

GE CAPITAL: Lower losses, Real Estate Turnaround

TRANSPORTATION: Emerging markets, Hybrid Technology

AVIATION: Global Airline Strength

HEALTHCARE: Global growth

GE’s Energy Infrastructure is expected to increase 32.16% over the next two years. GE Capital is being scaled back.Technology is expected to increase 20.70% over the next two years.

•21% increase in Aviation•15.54% increase in Healthcare.

Strengths WeaknessesBroad range of products Pending law suitsWide geographic presence GE Capital?Increasing profitability

Opportunities ThreatsIncreased dividend Payout Weak economyAcquisitions Highly regulatedEmerging economies Strong competition

Detail fundamental data

Methodology: Target yield / PEJustification: DCF / DDM difficult to apply given significant business changes on the horizon

Current Price: $15.93

Bull case: Reference Spreadsheet

Dividend2012E Dividend: $0.71Target Yield / Price: 3.0% / $29.67

P/E Multiple2012E EPS: $2.02Target Multiple / Price: 14.0x / $28.25

Average PT: $28.96 (+81%)

2011 Peak Valuation:Dividend Yield: 2.8%P/E: 15.8x

Risk/reward is favorable @ 1:2.5Downside should be limited to $12

~1x book value~5% div yield (assuming no increase from GE

Cap)

BUY 200 shares of GE at limit of ~$15 ($3,000)

Total position after purchase: 600 shares / 2.1% of portfolio

Industrials Target Sector Allocation: 7.3%, Current Sector Allocation: 4.9% Allocation after purchase: 6.3%