Recovery Act Investment - General Electric Home Appliance

The Recovery Act has help many companies by providing tax credit, loan or even direct funding.  General Electric (NYSE:GE), a potential winner from the nation-wide high speed rail deployment, has already indirectly benefited from a Recovery Act renewable energy project.  In addition the company is also getting direct funding from yet another Recovery Act project.


Energy efficiency is one of the main goal in many of the Recovery Act projects.  Beside the clean energy projects such as solar power, wind power and smart grid, another way to achieve energy efficiency is within the household by using energy efficient home appliances such as washers and dryers.  Therefore by receiving $24.8 million of Recovery Act funds through Advanced Energy Manufacturing Tax Credit, General Electric is investing $600 million into its Louisville, Kentucky Appliance Park facility to expand manufacturing of energy efficient home appliances.  The facility has already create 135 new jobs and will eventually contribute 800 new jobs.  


Shares of General Electric continues to go up with technical trend  points to more upside with 20 day moving average has just crossed above 50 day moving average.  As a mega cap company of close to $190 billion in market cap, General Electric still provide a decent dividend yield of 3.2%.