General Electric (GE) Buy Presentation September 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

Business Drivers 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.

StrengthsWeaknesses Broad range of productsPending law suits Wide geographic presenceGE Capital? Increasing profitability OpportunitiesThreats Increased dividend PayoutWeak economy AcquisitionsHighly regulated Emerging economiesStrong competition

Detail fundamental data

Methodology: Target yield / PE Justification: DCF / DDM difficult to apply given significant business changes on the horizon Current Price: $15.93 Bull case: Reference Spreadsheet Dividend 2012E Dividend: $0.71 Target Yield / Price: 3.0% / $29.67 P/E Multiple 2012E EPS: $2.02 Target 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 1:2.5 Downside 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%