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Subject:  My 5 Finalists -- #1 GE Date:  6/13/1998  1:32 AM
Author:  MrShihTzu Number:  210 of 8329

As promised in tonight's report, here's a few sentences on each of my five finalists.

GE -- According to my calculations from the most recent 10Q, they pass all the numerical CK criteria.

Gross Margin -- 57.9%
Net Margin -- 8.4%
Leveraged Flow -- 0.11
Unleveraged Flow -- 0.61
Cash/Debt -- 1.77

Of course, the flow numbers are a little distorted because as discussed in my May reports on banks, they have a significant financial busindue in GE Capital.

They certainly pass the consumer mindshare idea as well with products like GE light bulbs, GE appliances (though this is NOT a repeat business) and NBC TV.

They have a wide assortment of global consumer brands.

The stock's performance over the years certainly speaks for itself.

Personally, I like the direction as well. EPS has grown by slightly over 13% each of the last 5 years and is expected to do about the same over the next 5.

Biggest shortcoming of this one is that they have a lot of "heavy" businesses.

Phil
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