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Stocks For Mom
by TMF 2Aruba

General Electric Company
3135 Easton Tpke.
Fairfield, CT 06431
(203) 373-2211

Hi, Mom! I wanted to wish you a happy Mother's Day. Because you're so special, I picked a stock that gives investors that same feeling of comfort you've always given me -- General Electric (GE).

I know you're saying, "Oh, of course I know GE, they make the appliances in my kitchen." But Mom, GE is so diversified, they are into everything from clothes washers to locomotives, and their business is world wide. I bet you didn't know that their subsidiaries operate power plant parts manufacturing, NBC TV, aircraft engines, and plastics, to name a few. So you see, mother, they are much more than just the refrigerator.

HERE'S WHAT WE'RE HOPING FOR: They are quite successful too, Mom. GE's market value exceeds $150 billion, and they just continue to perform. In the first quarter of 1997, the company achieved record earnings with another double-digit increase. Their leading global businesses consistently deliver top-line growth with increased margins and strong cash generation. First quarter earnings and earnings per share were records for the quarter, as earnings increased 11% to $1.677 billion, and earnings per share increased 12% to $1.02. This follows a record year in 1995, where the market rewarded GE investors with a total return of 45%! We're hoping for continued success which, in my opinion, shouldn't be a problem when you look closely at the company's history.

And here's an interesting fact. I bet you didn't know that GE is the only one of the original Dow 30 (Dow Jones Industrial Average - DJIA) stocks that still remain on the list. Since the Dow 30 represents key industries in the US economy, it speaks volumes about GE's ability to stay current, competitive, and to change and grow the company.

If you check out this company, Mom, you'll find that on April 23, the shareholders approved a two-for-one stock split, and a related increase in the company's common stock from 2.2 to 4.4 billion shares. This split, according to GE's chairman, John F. Welch, reflects their confidence in the long-range prospects for GE. It was the eighth split in the company's history.

HERE'S WHAT TO LOOK OUR FOR: Of course, we always want to look out for unexpected news, but it seems to me, short of a worldwide ban on electricity, or a major market crash, GE is one place I'm comfortable having my mom put her investments. In fact, if you want, Mom, you can take advantage of GE's Dividend Reinvestment and Share Purchase Plan.

And that's my stock pick for you this year, Mom. GE's slogan is, "We Bring Good Things to Life,"...and you know...isn't that just what YOU did?

Bye, Mom, I love you.


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