Transcript H&R Block, Inc. (HRB) Align Technology Inc. (ALGN)

Yash Bhatnagar
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Buy: $15.80
Sell: $20
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The company operates through four segments:
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Energy
Technology Infrstructure
Capital Finance
Consumer and Industrial
Ranked as the 14th most profitable company worldwide,
and the sixth largest firm. (Fortune, 2011)
GE participates in a wide variety of markets including
the generation, transmission and distribution of
electricity, aviation, automation, motors, jet engines,
medical imaging, and Television media (NBC coownership)
Headquartered in Fairfield, Connecticut
Jeffrey Immelt is Chairman and CEO
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Current Price:
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52-Week High:
Market Cap:
$16.06
13.19
1.58
0.15/3.74%
1.22
$14.02
$ 21.65
$ 170.24B
◦ Extremely diversified core offerings
 9/11 Hit on insurance business
 Survival of ‘08 Recession
Strong history and corporate culture
Current price at lower end of 52 week range.
Earnings growth expected in 2012
Met 3rd quarter profit estimates
The stock deliver a 5 year average annual growth
rate of around 10%.
◦ Sharpe Ratio (with estimated profit) of 2.7
◦ Third-quarter net earnings attributable to GE
climbed 57 percent to $3.22 billion
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Siemens AG, 3m Company, United Technologies
Corp., Hitachi Ltd.
More diversified than competitors
 Long term stability
More than twice the market cap of next largest
competitor (Siemens AG)
Perfectionist corporate culture
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#82 green company (Newsweek)
#13 most admired company (Fortune)
Environmental initiatives
On June 6, 2011, GE announced that it has licensed solar thermal technology from California-based eSolar for use in power plants that
use both solar and natural gas.[55]
On May 26, 2011, GE unveiled its EV Solar Carport, a carport that incorporates solar panels on its roof, with electric vehicle charging
stations under its cover.[56]
In May 2005 GE announced the launch of a program called "Ecomagination," intended, in the words of CEO Jeff Immelt "to develop
tomorrow's solutions such as solar energy, hybrid locomotives, fuel cells, lower-emission aircraft engines, lighter and stronger durable
materials, efficient lighting, and water purification technology”. [57] The announcement prompted an op-ed piece in The New York Times
to observe that, "while General Electric's increased emphasis on clean technology will probably result in improved products and benefit its
bottom line, Mr. Immelt's credibility as a spokesman on national environmental policy is fatally flawed because of his company's
intransigence in cleaning up its own toxic legacy."[58]
GE has said that it will invest $1.4 billion in clean technology research and development in 2008 as part of its Ecomagination initiative. As
of October 2008, the scheme had resulted in 70 green products being brought to market, ranging from halogen lamps to biogas engines.
In 2007, GE raised the annual revenue target for its Ecomagination initiative from $20 billion in 2010 to $25 billion following positive
market response to its new product lines.[59] In 2010, GE continued to raise its investment by adding $10 billion into Ecomagination over
the next five years.[60]
GE (General Electric) Energy's renewable energy business has expanded greatly, to keep up with growing U.S. and global demand for clean
energy. Since entering the renewable energy industry in 2002, GE has invested more than $850 million in renewable energy technology.
In August 2008 it acquired Kelman Ltd,[61] a Northern Ireland company specializing in advanced monitoring and diagnostics technologies
for transformers used in renewable energy generation, and announced an expansion of its business in Northern Ireland in May 2010.[62]
In 2009, GE's renewable energy initiatives, which include solar power, wind power and GE Jenbacher gas engines using renewable and
non-renewable methane-based gases,[63] employ more than 4,900 people globally and have created more than 10,000 supporting
jobs.[64]
GE Energy and Orion New Zealand Limited (Orion) have announced implementation of the first phase of a GE network management
system to help improve power reliability for customers. GE's ENMAC Distribution Management System is the foundation of Orion's
initiative. The system of smart grid technologies will significantly improve the network company's ability to manage big network
emergencies and help it to restore power faster when outages occur.
GE unveiled a 40W replacement Energy Smart LED bulb, to be available late 2010 or early 2011. The company claims that the new LED
bulb will provide a 77% energy savings and produce nearly the same light output as a 40W incandescent bulb, while lasting more than 25
times as long.
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Educational initiatives
GE Healthcare is collaborating with The Wayne State University School of Medicine
and the Medical University of South Carolina to offer an integrated radiology
curriculum during their respective MD Programs led by investigators of the
Advanced Diagnostic Ultrasound in Microgravity study.[66] GE has donated over one
million dollars of Logiq E Ultrasound equipment to these two institutions.[67]
Compliance & Governance
In a time of rigorous regulatory oversight and enforcement, strong compliance
and governance processes are more important than ever for global organizations.
Merely having regulations in place is not enough–companies must devote
significant attention and resources to ensuring that such rules are truly embedded
in their actions every day.
GE infuses compliance and governance into every aspect of its business. On a
companywide level, the Regulatory Excellence initiative has mandated a full
reexamination of GE’s compliance systems and processes to assure that risks are
anticipated and managed effectively. Processes are in place for executive
accountability and compliance training, and an open reporting environment and
acquisition framework set the tone for a culture of integrity.
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Policy Positions
Energy & Climate GE believes that energy, environmental and
economic challenges present an exciting opportunity to create
solutions that benefit our customers and society. Read more
about our viewpoint on Energy & Climate on the GE corporate
Web site. Free Trade GE believes a strong global trade network
spurs innovation, strengthens the rule of law and can help lift
people out of poverty and into active economic participation.
Read more about our viewpoint on Free Trade on the GE
corporate Web site. Iran In 2005, GE and its board decided to
stop doing business in Iran due to developing circumstances, the
concerns of our shareholders and our view of our corporate
responsibilities. Read more about our viewpoint on Iran on the
GE corporate Web site. China Policy Growing GE’s business in
China depends on our continued leadership in technology,
environmental concerns and best business practices.