Implied Volatility Surging for Teck Resources (TECK) Stock Options
Baker Hughes, a GE company BHGE announced that 92 million of its class A common shares will be sold by General Electric Company GE in a secondary offering. The leading oilfield service player added that additional 9.2 million class A stocks will be purchased by the underwriters if they execute their 30-day options.
In addition to this, Baker Hughes has decided to buy back 65 million of its class B common stocks from General Electric. Overall, the transaction that includes the divestment of 166.2 million Baker Hughes shares, through both stock buy-back program and secondary offering, will likely fetch General Electric nearly $4 billion in cash.
It is to be noted that with the closure of the deal, the ownership stake of General Electric in Baker Hughes will drastically fall to just more than 50% from 62.5%. Importantly, General Electric will have to take prior permission from the underwriting banks if the company decides to divest its remaining stake in Baker Hughes in the coming 180 days. The developments show that General Electric is determined to separate from Baker Hughes earlier than expected.
Many analysts agree that the attained fund from early separation will help General Electric lower its piled-up debt load — reported at $112.3 billion as of Sep 30. In fact, General Electric added that the plan for early exit will not only benefit its shareholders but Baker Hughes’ also. Although there might be an early separation of the companies, Baker Hughes will continue to have access to the digital technology of the industrial conglomerate.
Baker Hughes, a GE company Price
Baker Hughes, a GE company Price | Baker Hughes, a GE company Quote
Currently, Baker Hughes carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are Hess Corporation HES and Enterprise Products Partners L.P. EPD. Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hess beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 230.5%.
Enterprise Products surpassed the Zacks Consensus Estimate in the prior four quarters, the average positive earnings surprise being 9.3%.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
General Electric Company (GE) : Free Stock Analysis Report
Hess Corporation (HES) : Free Stock Analysis Report
Baker Hughes, a GE company (BHGE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research