GE is currently "sitting atop more than $132 billion in cash.
Another shopping spree?
The last figure is hardly inconsequential. As I noted above, Lufkin Industries has just become part of the GE fold. I'm not at all convinced, however, that other significant purchases aren't in the offing. One name that has been bandied about by oil-field services types is Weatherford International (NYSE: WFT ) .
By my calculation, Weatherford's $19 billion in enterprise value -- which obviously includes its nearly $9 billion in net debt -- comes to just 7.9 times its trailing-12-month EBITDA. The Geneva-based integrated service provider, which has been battling tax difficulties, would seemingly constitute an ideal arrow for GE's oil and gas quiver.
There obviously are other aspects of General Electric's business portfolio that make for a compelling opportunity. However, the company's being catapulted into a leading position in the oil and gas services sector that, for my money, makes it well worth Foolish scrutiny."