Getting Positioned for the Nat Gas Revolution

The trading week began with news that industrial General Electric (GE) had inked a $3.3 billion deal to buy Lufkin Industries (LUFK), which makes various products -- like rod lifts -- for the energy industry. That price, $88.50 per share, constitutes a hefty 38% premium over Lufkin's Friday closing level.

I think this transaction is important for several reasons. First, it continues GE's recent strategy of expanding more deeply into oil services, as well as large medical and industrial business lines, as it moves out of its media and finance businesses. Second, it shows that CEO Jeff Immelt understands how important and long-lasting the shale revolution will ultimately be in the U.S. I agree with "El Capitan" Cramer, who said on CNBC Monday that Immelt probably understands this better than any other non-energy CEO out there....387 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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