SEC denies General Electric bid to block global warming shareholder proposal; Amid economic downturn, GE should justify lobbying for economy-harming climate legislation, says Free Enterprise Action Fund (Ticker: FEAOX)
For more info contact: Steve Milloy, 301-258-2852, firstname.lastname@example.org
Washington DC, January 24, 2008 - The U.S. Securities and Exchange Commission has for the third time in three years denied a bid from the General Electric Company to block shareholders from voting on a global warming shareholder proposal from the Free Enterprise Action Fund (Ticker: FEAOX).
“The economy is in trouble, GE’s stock price is faltering, and new questions are being raised about the science associated with global warming alarmism, yet GE CEO Jeff Immelt is lobbying for climate legislation that virtually everyone recognizes as a major threat to the national and global economies,” said Steve Milloy, portfolio manager of Action Fund Management (AFM), the FEAOX’s investment adviser. (1)
“All we’re trying to find out is why Mr. Immelt is pursuing this seemingly hazardous course of action despite warning signs indicating a more cautious approach is warranted,” Milloy added.
“The sort of global warming alarmism promoted by Mr. Immelt has already backfired twice on the company,” said AFM’s Tom Borelli.
“First, GE’s investment in advanced coal technology is being jeopardized by the backlash against coal-fired power plants,” said Borelli. “A new report says that, in 2007, 59 proposed coal-fired plants were cancelled, abandoned, or put on hold.”(2)
“Next, GE had to scramble in late-2007 when Congress moved to phase-out the incandescent lightbulb, thereby jeopardizing GE’s investment in more efficient incandescent bulbs,” Borelli added. (3)
Mr. Immelt’s environmental technologies initiatives, called ‘Ecomagination,’ added $14 billion in revenue to a diversified conglomerate that had $173 billion in total revenues. (4)
“We view Ecomagination as the tail wagging the GE dog,” said Milloy. Not only is Ecomagination only a small part of GE’s business, but the sort of global warming alarmism needed to grow Ecomagination could very well wind up hurting the other 90-plus percent of GE’s business,” Milloy observed.
“If global warming alarmism and Ecomagination are such good things for GE,” it’s curious that Mr. Immelt has three times asked the SEC to shield himself from having to answer questions from shareholders,” said Borelli. “We want to know whether and why Mr. Immelt is lobbying against GE’s earnings,” Borelli concluded.
By investing in the FEAOX (http://www.FEAOX.com), individuals can participate in the global warming debate while having an opportunity to earn a financial return through ownership of a large-cap mutual fund. With a minimum investment of $2,500, individuals can join FEAOX’s effort to make CEOs justify their positions on global warming. FEAOX is available exclusively through Foreside Distribution Services L.P., (applications may be obtained at http://www.FEAOX.com/how.html), and through E*Trade Financial, Scottrade, TD Ameritrade and HSBC.
An investor should consider the fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Free Enterprise Action Fund can be found in the fund's prospectus. To obtain a prospectus, please call 1-800-766-3960 or visit http://www.FEAOX.com. Please read the prospectus carefully before investing.
Mutual fund investing involves risk, including loss of principal. The Free Enterprise Action Fund is advised by Action Fund Management, LLC, which receives a fee for its services, and is distributed by Foreside Distribution Services, L.P., which is not affiliated with Action Fund Management, LLC.