GE Finance

Archive for October, 2011

When you’re making an informed decision about a wireless home security system, GE home security systems should be on your list to check out.

Full Disclosure

Let me say right up front that I’m not a GE rep nor do I represent any home security system supplier. I do not make any money buying or selling GE products. I’m a homeowner — probably just like you — who wants to figure out what sorts of products GE offers. I want to know the names that they’re sold under and all the features and benefits. After that, I can make an informed decision about the best solution for me and my family.

Now, in choosing a home security system, it may be that you will have no choice — you’ll need to go wireless. Perhaps your home is not well suited to running hardwiring, or you want a system that you can install yourself quickly and easily. GE wireless home security systems are available to help you achieve that goal.

One very popular choice is the GE Simon 3 Wireless Home Security System.

Features

This system has an advanced technology in a simple console design. It is smaller and more attractive than a lot of units that came before it. And it’s made by General Electric, so you can’t go wrong there.

The GE Simon 3 wireless home security system is a self-contained unit made up of (but not limited to): Lighting control center with a keypad Control unit Sounder or siren

It is also expandable, using a complete selection of add-on devices that give you a lot of useful functionality.

Benefits

For example, if your kids are old enough to come and go to and from school by themselves, the GE wireless home security system has a latchkey feature which allows you to check, remotely, whether your children have arrived home at the appropriate time.

Another benefit of the GE Simon 3 wireless home security system comes in the way it handles a home intrusion. If an intrusion occurs (or any other problem is identified by one of the sensors), the system can dial up to three different phone numbers. Not only that — once you pick up the call, the system will actually talk to you with a synthesized voice and explain the problem. This gives you the option of making a decision about what to do next — including disarming and controlling the system over the phone. Or, if you have one of the wireless remotes that is available, you can use the remote control to disarm the system.

The GE Simon 3 wireless home security system can even be programmed to call your security monitoring company as well (including a backup number just in case).

Some other features of the GE Simon 3 wireless home security system include: The ability to monitor up to 24 zones wirelessly (including the capability to make two of these hardwired). It supports a two-way radio frequency talking touchpad as well as a hand-held radio frequency touchpad and keychain touchpad. When you are programming the GE Simon 3 wireless home security system, it will use voice cues that support fast and simple programming. It contains a 24 hour backup battery …and much more.

And best of all, perhaps, is that the system is simple enough for you to do-it-yourself.

The GE Simon 3 wireless home security system is widely available for purchase online or at your local home improvement center or home electronics superstore. Prices start at right around $200 and some systems will even throw in a year’s worth of alarm monitoring — for free.

Conclusion

Again, I am not a GE representative, nor do I make any money by recommending their products. I’m just saying that GE offers a complete line of excellent home security system products that you should consider when making an informed decision about the safety and security of your family and/or business.

In the world of kitchen appliances, the magic word in 2009 has been VALUE. Gone are the days where consumers will just pony up thousands upon thousands of dollars simply for a brand name or a certain look. Consumers now want their dollars to travel far in terms of value and quality. Kudos to GE Appliances for meeting this trend, because their GE Cafe line of appliances have proven to be home runs in terms of fulfilling the new consumer sentiment. In particular, the GE Cafe CGS980SEMSS 30″ gas range has been a particular hot seller.

The CGS930SMSS is appointed in sleek fashion, and sports a ton of features:
high quality stainless steel body five sealed burners going up to 18k BTU Convection baking system Recessed cooktop to contain spills Self-Clean oven Lower oven adds another 1.0 cu ft of cooking capacity These features and looks have transformed the GE Cafe CGS930SMSS gas range into the best seller in the cooking lineup of the Cafe line. The range has actually sold so well that it has cut into the sales of GE’s highly rated (by Consumer Reports) Profile line of gas ranges.

It’s been amazing to watch consumers who two years earlier, were spending $6-$8k on cooking ranges, shift over to the Cafe line. Why not? It not offers professional functionality and performance, but the CGS980SEMSS looks just as nice as ranges that are 3x the amount of money. Plus, with all of the aforementioned features, someone who purchases the CGS980SEMSS doesn’t have to feel short-changed – it brings plenty to the table, no pun intended.

Other good news for shoppers – GE also doesn’t impose a UMRP policy (minimum selling price) on retail partners, so appliance stores are allowed to discount the CGS980SEMSS aggressively, thus providing more benefit to consumers.

Lastly, their have been very few reported problems with the Cafe gas range, so GE has once again shown that they know how to build reliable and robust cooking appliances for demanding consumers.So you can buy with confidence that you are purchasing a product that will last and that the manufacturer stands behind. And in the unlikely event that something does go wrong with the CGS980SEMSS, GE’s service division (1-800-GE CARES) is second to none with reach that covers the entire contigous United States.

One final selling point – GE is offering uo to $500 back to consumers if they buy an entire Cafe appliance package by 12/31.

Not so often do companies hold such a vast array of businesses. Whoever thought companies could have a manufacturing, financial, and television segment but not succeed is wrong. The conglomerate industry is diversified. Holding these companies through uncertain times illustrate strong investing knowledge. The current state of the economy is a bit instable, so owning a company like GE is a good investment. However, there are other companies in this industry. These companies not only have a strong business model, but they have excellent growth potential and solid valuation. One of these companies is 3M (MMM).

Before examining the financial statements of 3M, it is vital to understand the variety of activities this company performs. According to Reuters, 3M is a “diversified technology company with a global presence in various businesses, including industrial and transportation, healthcare, display and graphics, consumer and office, safety, security and protection services, and electro and communications.” The industrial and transportation business includes products such as food and beverage, personal care, and automobiles. More specific industrial products include polyester, foil, and tape. Specific transportation products are insulation components like catalytic converters. The health care segment produces supplies for medical, surgical, and dental use. The display and office business employs workers to produce stationary products, supply products, and home-improvement products. Office products like Post-it Memo Pads are also produced in this section. 3M also controls a safety segment and an electro and communications section, where the latter creates products including telecommunication fiber-optic products.

The main idea to take from the different business of 3M is the hedging strategy. Instead of focusing on only one industry, 3M can have a section of its business prosper, while another section’s growth slows. It is true that 3M may not experience any incredible share price appreciation because of its strategy, but 3M will not experience any dramatic share price fallout either. As evidence, since 1999, 3M has only had one distinct negative share price calendar year (2005), and that year only yielded a loss of 6%. Each year during this timeline before and after 2005, 3M has been flat or shown share price appreciation. In 2006 the share price rose about 5%, and so far in 2007 the share price is up over 30%. Throughout this period, the US economy has been through exuberant growth to panicked recession. However, because of 3M’s strategy and investor’s trust in such a well-respected brand, 3M has managed to avoid so terrible economic periods.

While, 3M’s business model is great, there are many other corporations in this industry that have similar strategies. What differentiates 3M however is its fundamentals. Over the last fiscal year, according to Reuters, 3M saw revenue at $22.9 billion dollars. This is an outstanding number. What is more outstanding is relative sales growth. 3M’s recent sales figure was 7.86% higher than it was the previous fiscal year. Not only is this increase higher than its five year average, but it is also higher than the five year average of the conglomerate industry. Considering the size of sales volume, this is a great sign of growth. What is even more outstanding is earnings growth. 3M has been efficient with its costs and saw an increase in profits of over 32.76% last fiscal year. This number is higher than the company’s five year average at 23.13% and also higher than the industry’s average at 13.87%. Comparing this figure to industry competitors, United Technologies only saw a 13.72% increase during the same time period, Emerson Electric saw a 20.26% increase, and GE only had profits grow by 12.16%. Clearly 3M is growing and using good internal controls to reduce cost.

Another way of illustrating 3M’s strong growth is through its margins. Gross margins for 3M at 47.94% are quite high compared to the industry’s average at 39.01%. 3M’s gross margins are also higher than United Technologies’ 26.78% figure, Emerson’s 35.70% number, and GE’s 42.83% margin. In addition, 3M’s operating margins at 28.04% are also above the industry average at 15.24%, not to mention above the rest of the industry’s respective figures. The more important margin, net profit margin, is also in favor of 3M. The past fiscal year illustrated this figure at 18.61%. The number is quite high compared to the company’s five year average at 14.70%. In addition, 3M’s number beats the industry average of 11.81%, United Technologies’ figure at 8.10%, Emerson’s margin at 9.29%, and GE’s number at 12.88%. 3M is working very efficiently compared to its industry peers. It can use the extra cents it makes for every dollar to help the company and investors. Capital spending over the past five years for 3M is growing at 3.57%. This number is higher than the industry average of 0.98% and higher than most of the aforementioned companies. Higher capital spending now means even more efficiency in the future for 3M. Lower costs mean wider margins and a greater ability for 3M to buy back shares from investors or increase its dividend.

While 3M’s growth looks excellent, some investors may question the company’s valuation. According to Reuters, the conglomerate industry has an earnings multiple of 19.92. Fortunately, for investors wanting to buy shares of this company, the forward P/E ratio for 3M is 18.99. This number is very similar to GE, Emerson, and United Technologies. In addition, 3M’s forward price to sales ration of 2.82 is also similar to the mentioned companies. This indicator illustrates that not only is 3M growing quite strongly, but 3M is also undervalued compared to its growth across this industry. High growth and low valuation typically create a strong recipe for success. 3M’s PEG ratio of 1.67 is near or below most of the industry competitors which again illustrates low valuation given growth.

In terms of other 3M strengths, this company is solvent with a 1.28 current ratio. The company is owned by more than 67% institutional investors. This indicates that the smartest investors like this company and want to take the risk to own it. The company’s ROE of 39.97% is excellent. This number is above its five year average of 33.31% and also above the industry average of 20.97%. This number obliterates GE, United Technologies, and Emerson’s figures. And if higher margins continue to be present for 3M, future buybacks will lead to even increased returns. 3M’s ROA of 19.82% and ROI of 27.80% are also quite strong. 3M is also very efficient when it comes to turnover. Receiver turnover at 6.99 beats the industry average of 4.27 which means consumers pay their discounts or credit on average every 50 days. Asset turnover at 1.07 is also stronger than the industry average of 0.53, which means 3M’s asset moves usually mean larger sales. Overall, there are plenty of advantages to owning 3M and its fundamentals.

Therefore, now would be an excellent time to think about purchasing 3M shares. The dividend yield for this company at 2.04% is very reasonable. In addition, technical indicators illustrate appreciating 50 day SMA and EMA indicators coupled with an up trending Parabolic SAR. The recent cross over of SMA and EMA a few weeks back indicates that 3M is ready to rise and should enjoy higher share price appreciation until the lines converge. Therefore, given the fundamental, technical, and strategy analysis, there are plenty of reasons for investors to purchase shares of 3M as a part of a diversified portfolio.