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General Electric

General Electric GEThis isn’t your grandfather’s General Electric (GE).

The major industrial manufacturer is quickly becoming a key player in the oil services industry. During the past decade or so, GE went from “almost nothing” in oil and gas to investing more than $15 billion on expansion in the past few years. The firm makes a host of equipment needed to produce energy — including sub-sea trees and pumps — and as GE Oil & Gas posted a 16% year-over-year jump in revenue for 2012.

It also continues to add to its arsenal.

The latest buyout of artificial lift and pump-jack manufacturer Lufkin Industries (LUFK) will make oil & gas GE’s third-biggest unit. Given just how big global energy demand is getting, GE could be putting itself into a sweet spot for the future. Pickens is positioning himself well, too, by adding a 10,000-share stake in the industrial manufacturer.

If GE continues to rid itself of its troubled finance arm and goes back to “building things,” investors could be handsomely rewarded.

Article printed from InvestorPlace Media,

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