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Strategies & Market Trends : Paint The Table -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (12353)	1/31/2002 4:47:00 PM
From: Logain Ablar	Read Replies (1) \| Respond to of 23786

Hi John: I forget all the particulars but one of the underlying reasons for the HON purchase was to lower the % GE Capital represents to GE. The finance companies have a lower multiple and GE is well aware they need to be more balanced on the manufacturing side. A good article in Fortune last weekend pointing out in 2003 Power Systems contributes $500M less than in 2002 (I'm sure its already in GE's forecast but the worry is if power systems decreases more than that and its not offset by other businesses). I think Power Systems has been more of a contributor to GE's growth than GE Capital over the past couple of years. So GE is definitely on the prowl for some acquisitions to balance out the finance arm and help grow earnings. Actually if GE stays above the $34 it would be a nice higher low from 9/21 (I think it spiked to 29ish on the day Imlett (sp??) spoke and it shored up the whole market (setting the bottom) on that day. Tim