A strong signal has been sent today by General Electric Co. (
GE) regarding energy futures. Pending regulatory approval,
GE has penned a deal to acquire Dresser Inc. for $3 billion, thus expanding its reach and capabilities in the realm of natural gas extraction and usage. Dresser's products include technology for gas engines, control and relief valves, measurement, regulation and control systems for gas and fuel distribution.
Investors who deal in energy futures have taken great interest in this deal, as it heralds a possible surge in natural gas price volatility. Both the availability and usage of natural gas are in flux right now. Natural gas prices have remained somewhat depressed over the last year, and this acquisition by GE comes amid what appears to be a time of expanding natural gas availability.
GE shares are continuing on an upward trend, and investors are showing strong optimism. GE shares are up nearly 2.5% today, as of this writing. GE's year to date performance is boasting an admirable increase of just over 11%, and indications are that the current upward trend shall continue. Analyst consensus is giving GE a moderate to strong buy rating, with target prices in the $18 to $20 dollar range.