GE Jul 2019 7.000 put

OPR - OPR Delayed Price. Currency in USD
0.0000 (0.00%)
As of 11:14AM EDT. Market open.
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Previous Close0.0100
Expire Date2019-07-19
Day's Range0.0100 - 0.0100
Contract RangeN/A
Open InterestN/A
  • Moody's15 hours ago

    YPF Energia Electrica S.A. -- Moody's assigns a B2 rating to YPFEE's up to $500 million senior unsecured notes; negative outlook

    Moody's Investors Service ("Moody's") has assigned today a B2 rating to YPF Energía Eléctrica S.A. (YPFEE) planned note issuance of up to $500 million under its medium term note program. The notes will have a 7-year maturity and YPFEE will use the proceeds to partially fund its investment program, repay outstanding debt and working capital needs. Moody's has reviewed the preliminary draft legal documentation related to the debt issuance.

  • The Outlook of GE Stock Remains Positive
    InvestorPlace20 hours ago

    The Outlook of GE Stock Remains Positive

    General Electric (NYSE:GE) stock fell modestly on Monday after UBS downgraded GE stock. This comes on the heels of Stephen Tusa at JPMorgan Chase (NYSE:JPM) reiterating his bearish $5 per share target on GE stock. It's true that GE is facing issues at its Power and Aviation units and may have some self-inflicted wounds.Source: Shutterstock UBS lowered its price target on GE stock to $11.50, but that's well above the current $10-plus per share level where GE stock currently trades. UBS believes that General Electric stock will "take a breather," rather than fall to JPMorgan's price target. Still, despite concerns, the speculative buy case on GE appears to still be valid. * 8 Penny Stocks That Have Fallen From Grace UBS analyst Damian Karas cited a "notable decline in interest rates and ongoing power market weakness" as reasons for the downgrade of GE stock. However, Karas went on to say that he thinks the company is on the road to a "multi-year turnaround."InvestorPlace - Stock Market News, Stock Advice & Trading Tips GE Stock Remains SpeculativeThis downgrade highlights the point that CEO Larry Culp and General Electric stock bulls have pointed out: GE is in the midst of a multi-year turnaround. Investors should not expect GE stock to return to its $600 billion market cap. Nor should they expect it to regain its place on the Dow 30 anytime soon. The journey from the world's largest market cap to the near-destruction of the company took years. By the same token, nobody can expect GE to recover overnight.InvestorPlace columnist Vince Martin noted many of the setbacks GE has faced, including "confusion" about the growth of the orders received by its Power unit. Moreover, GE Aviation, often regarded as one of the company's more stable divisions, has faced issues with its GE9X aircraft engine.Further, the U.S.-China trade war and the possibility that toxic assets remain on the balance sheet of GE Capital remain on the minds of some investors. One only has to study the history of Pan American World Airways or Enron to know that once-respected large companies can disappear, so the owners of General Electric stock are facing considerable risk. The UBS Downgrade Changes Almost NothingHowever, I do not think the buy case has changed for General Electric stock since the start of the year. It remains a speculative stock. I do not believe any of its known challenges will derail its recovery.But investors do need to consider that GE has risen by around 38% since the start of the year, so a pause or pullback wouldn't be very surprising.Still, if GE does recover, the owners of General Electric stock would make a great deal of money. As a result, speculating on GE stock could be worthwhile. As recently as two and a half years ago, GE traded at triple the price at which it stands today. Moreover, analysts, on average, expect the company's earnings to resume rising in fiscal 2020. They also believe that its profit will increase at least 10% annually from fiscal 2020 through 2022. Assuming the company can maintain that growth rate for the foreseeable future, the price of General Electric stock would probably rise meaningfully. GE Stock Remains a Speculative BuyAmid the news, I still see GE stock as a speculative buy. Neither the UBS downgrade nor the continued $5 per share price target from JPMorgan's Tusa has brought GE stock down recently. Moreover, the forward price-earnings (PE) ratio of General Electric stock now stands at just above 14. I consider that a low multiple for a company that looks set to experience double-digit-percentage profit growth.GE could fall significantly if the worst fears about it come true or if the major indexes enter a bear market. However, as long as GE's profit rebounds and its setbacks seem manageable, General Electric stock still looks to be on the path to recovery.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post The Outlook of GE Stock Remains Positive appeared first on InvestorPlace.

  • Why $70 Looks Like a Floor for Exxon Stock
    InvestorPlace21 hours ago

    Why $70 Looks Like a Floor for Exxon Stock

    From a capital appreciation standpoint, Exxon Mobil (NYSE:XOM) stock has been a disappointment. Over the last decade, the XOM stock price has gained 12.5%. During that period, Exxon Mobil stock has badly lagged the S&P 500, which has returned a sizzling 223%.Source: Shutterstock But for investors focused on income, XOM actually hasn't been a terrible play. Exxon Mobil's dividends have more than doubled from a total of $1.66 per share in 2009 to what should be $3.48 in 2019. Investors' total return from Exxon Mobil stock has averaged 4.3% per year. * 8 Penny Stocks That Have Fallen From Grace That's still disappointing, since the S&P 500 has returned almost 15% annually, including dividends. But it's not terrible in an environment in which U.S. Treasuries have yielded less than 3% most of the time.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWe're still in that environment, with the 10-year Treasury yielding just 2.1%.It's true that buying a stock just for its yield can be very dangerous, as previous income darlings like General Electric (NYSE:GE), Kraft Heinz (NASDAQ:KHC), and Anheuser-Busch InBev (NYSE:BUD) all have cut their dividends recently.But Exxon Mobil doesn't have the debt problem those companies did (and still do) have. And while XOM stock has exposure to crude oil prices, it also uses a hedge to protect its profits. As a result, XOM stock price probably won't fall below $70 for long. And that makes XOM stock, currently at $75.50, an interesting play for income-focused investors in general and value-oriented, income-focused investors in particular. Why $70 Is a Key Level for XOM Stock PriceXOM hiked its quarterly dividend to $0.87 in May. That, in turn, suggests that investors are receiving $3.48 per share of XOM stock annually. And so, if the XOM stock price reaches $69.60, the stock would offer a yield of exactly 5%.It's difficult to see Exxon Mobil stock consistently yielding more than 5% for a few reasons. First, that type of yield is noticeable and usually not offered by relatively safe stocks. Of the Dow Jones Industrial Average stocks, only Dow (NYSE:DOW) and IBM (NYSE:IBM) offer higher yields. Both companies have real challenges (Dow is facing cyclical pressure and IBM has long-running growth problems).In the S&P 500, there are 35 components with higher yields. All have warts, among them AT&T (NYSE:T) and its debt load and Altria (NYSE:MO) which is facing concerns about long-term demand for its products.The second reason is that, historically, XOM stock has hardly ever yielded 5%. Its yield peaked at 5.5% during the 1987 market crash and touched 5% a few times through the early 1990s.But that was a very dark time in the crude oil markets, which had crashed after their early 1980s boom. Meanwhile, interest rates were much, much higher; investors could get 7% to 9% yields from10-year Treasuries.Without that alternative, a 5% yield from XOM stock is going to look very attractive. Indeed, in late May, as XOM and other oil stocks sold off, XOM stock bottomed just above $70. A bounce in crude prices helped, but it's likely that at least some investors saw the yield nearing 5% and pounced. Exxon Mobil Stock Is Safer Than It AppearsOf course, the question is whether Exxon Mobil stock really is safe. A 5% yield - or even a 4% yield - is attractive in this market. But what happens when crude prices plunge?The answer is that XOM's earnings will decline, but in a mostly manageable fashion. As I've written before, Exxon Mobil's "downstream'" operations - notably in refining - and its chemicals business provide an internal hedge. That's why XOM stock actually is a poor play on oil prices. But it's also why XOM stock didn't fall that far when the shale bust hit in 2016 - and why the company was relatively unscathed during the fourth quarter of 2018, which was disastrous for many oil and gas companies.If oil prices rise, XOM's upstream business will thrive and its downstream business will take a hit. When oil prices fall, the reverse is (usually) true. Despite this hedge, the XOM stock price is boosted by higher crude prices, as seen in 2014 when XOM stock hit an all-time high. But even amid a plunge in prices two years later, Exxon Mobil's dividend continued to rise,.XOM stock isn't risk-free. But Exxon's earnings easily cover the current dividend of XOM stock. The odds of XOM executing a GE-style dividend cut are slim, even with crude and natural gas prices relatively low. And this is an environment where, as I noted just last week, investors usually have to stretch for yield. If XOM is yielding 5% and 10-year Treasuries have a 2.1% yield, many investors are going to buy XOM stock. The TradeFor income investors, then, XOM looks reasonably attractive at $75.50. Its valuation is reasonable, at 14.4 times analysts' average forward earnings estimate. And XOM still looks poised to deliver further growth, as its CEO, Darren Wood, last year set a target of doubling the company's earnings by 2025.For traders, there's an intriguing option trade to be made as well. A bull put spread at $70 (selling the $70 put and buying a lower-priced put for protection) can offer double-digit returns or better, depending on the expiration date. That's essentially a bet that the XOM stock price won't be under $70 at expiration, which seems a nice bet to make at the moment.But there are some risks facing XOM stock at the moment. The U.S. presidential election could pressure XOM stock if a "green" Democrat was to win or even starts to gain momentum. A plunge in oil prices is another risk: Exxon Mobil does have hedges, but XOM stock still fell when crude collapsed in 2016.But there's risk everywhere when the market is at all-time highs, particularly for income investors. Getting a 4%+ yield from Exxon Mobil stock is one of the better risk-reward options out there at the moment. And that's precisely the point: investors aren't going to let a yield above 4% last for long. XOM stock isn't going to be the biggest gainer in the market over the next six months or the next three years. But, at the right price, it's an attractive dividend play.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Why $70 Looks Like a Floor for Exxon Stock appeared first on InvestorPlace.

  • Investing.com22 hours ago

    General Electric Falls 3% - General Electric (NYSE:GE) fell by 3.03% to trade at $10.06 by 15:24 (19:24 GMT) on Wednesday on the NYSE exchange.

  • GE Sells Solar-Business Stake to BlackRock
    Bloomberg23 hours ago

    GE Sells Solar-Business Stake to BlackRock

    (Bloomberg) -- General Electric Co. agreed to sell a majority stake in a solar-energy business to BlackRock Inc., giving the investment giant footing in a growing market as the ailing manufacturer shifts its focus elsewhere.A fund managed by BlackRock’s Real Assets unit will own 80% of Distributed Solar Development, a new company created from GE Solar, the companies said Wednesday in a statement. Financial terms weren’t disclosed.The deal furthers GE’s streamlining as Chief Executive Officer Larry Culp seeks to rescue the conglomerate by narrowing focus around aviation, gas power and wind energy. The Boston-based company is using mergers to exit the oil and locomotive markets, and GE has said it is “evaluating strategic options” for its venture-capital operations.GE Solar, a consulting business with about 60 employees, has been incubated within GE since 2012. The unit, which doesn’t make solar panels, focuses on “solar and storage solutions for the commercial industrial and public sectors.” GE had explored solar-panel manufacturing but sold its technology to First Solar Inc. in 2013.GE fell 1.5% to $10.23 at 10:42 a.m. in New York, while BlackRock slid 1.5% to $470.13.Once RiskyBlackRock’s Real Assets unit, which has more than $50 billion in client commitments, started its renewable-power platform in 2012. The GE deal comes as investors begin prioritizing a solar segment that was once viewed as riskier than developments for utilities or homeowners: projects for commercial and industrial customers.Part of the impetus is money, as smaller solar farms offer returns that can be more than 2% higher than big projects.It’s also a matter of availability and supply. Large institutional investors have dominated recent auctions for utility-scale developments, crowding out other would-be buyers. And states including California have committed to rid their grids of emissions, encouraging more renewables developments.To contact the reporters on this story: Richard Clough in New York at;Brian Eckhouse in New York at beckhouse@bloomberg.netTo contact the editors responsible for this story: Brendan Case at, Tony RobinsonFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Forget GE -- This Restructuring Industrial Giant Is a Better Buy
    Motley Fool2 days ago

    Forget GE -- This Restructuring Industrial Giant Is a Better Buy

    GE is working from a position of weakness. Most investors would be better off looking at Eaton, which is working from a position of strength.

  • Survey: Many doctors untrained, unwilling to treat opioid addiction
    American City Business Journals2 days ago

    Survey: Many doctors untrained, unwilling to treat opioid addiction

    The biggest barrier to accessing treatment for a substance use disorder is finding a doctor trained and willing to treat it.

  • Why GE Stock Is Stuck In Neutral
    InvestorPlace2 days ago

    Why GE Stock Is Stuck In Neutral

    One of the stock market's surprising stars in early 2019 was beaten up industrial conglomerate General Electric (NYSE:GE). GE stock rose from $7 in late 2018, to $10 by early February 2019, as investors took a favorable view on management's aggressive moves to turn the struggling business around.Source: Shutterstock Specifically, in early 2019, management divested multiple non-core assets and businesses, simplified the business model, raised cash, reduced leverages, and narrowed the company focus to related businesses with stable long-term growth prospects. The sum of these moves gave investors confidence that GE was in the early stages of turning into a smaller, but better and more valuable company in the long haul. GE stock rallied in response.But, that rally has been on pause over the past few months. From early February through mid-July, GE stock has been stuck in neutral, bouncing around the $10 range, while the S&P 500 has risen more than 10%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Why has GE stock gone from out-performer to under-performer over the past few months? More importantly, will this under-performance persist?Let's take a deeper look. Lack of Clarity Has Short-Circuited GE Stock RallyIn the big picture, a lack of clarity regarding GE's long-term growth prospects short-circuited the big early 2019 rally in GE sock.In early 2019, General Electric was taking consistent steps towards laying the groundwork for healthier future growth prospects. Most of those steps were centered around non-core asset and business divestitures, which allowed for leverage reduction and more optimal resource allocation. But, such asset and business divestitures have stopped happening over the past few months.In the absence of these divestitures, investors have started to ask questions. Which businesses will remain after all this shedding is done? How big will GE be at that point in time? What will the growth prospects be like? Will the company successfully reduce its leverage? How long will this whole process take?None of these questions have clear answers. This divergence between a lot of questions and few answers has created a significant lack of clarity when it comes to GE's long-term growth prospects. It turns investor optimism into investor caution, which turns a GE stock rally into a sideways trading pattern.That's exactly what has happened to GE stock over the past few months. Lack of Clarity Will Continue to Weigh on General Electric StockUnfortunately for bulls, this lack of clarity will persist for the foreseeable future, and it will likely keep GE stock stuck in neutral.The reality of the GE turnaround is that -- because the business is so big and complex with a lot of moving parts -- the simplification process will take time. As such, lack of clarity will be inherent to the GE growth narrative for the foreseeable future.On top of that, global economic growth trends remain sluggish, with the manufacturing sector posting decade-worst growth and heading into a potential recession in 2020. GE has a ton of exposure to the manufacturing sector. Bad fundamentals there is bad news for General Electric stock.Further, Wall Street has become increasingly cautious on GE stock. According to YCharts, despite the 2019 rally, the sell-side consensus price target for GE stock has actually dropped year-to-date. One could very reasonably argue that the 2019 rally was brought on by undervaluation (GE stock was 30% below the consensus price target in January), and that such undervaluation no longer exists (GE stock is only 10% below the consensus price target today, roughly the same divergence it has had over the past five years).Broadly, then, current fundamentals imply that GE stock will remain in neutral for the foreseeable future. Bottom Line on GE StockI have faith that GE will downsize around its aviation business, and create a "new GE" within the next five years that is far healthier and more profitable than the GE of today. But, the jump from today to that future requires a leap of faith which investors aren't willing to take just yet.They won't be willing to take that leap until clarity emerges regarding what this company will look like in five years. Until that happens, the best way to play GE stock is by watching it from the sidelines.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Why GE Stock Is Stuck In Neutral appeared first on InvestorPlace.

  • GE loses a bull, and stock falls
    MarketWatch2 days ago

    GE loses a bull, and stock falls

    Shares of General Electric Co. dropped Monday, after UBS backed away from its bullish stance, citing significant outperformance in the face of continued power market weakness and a significant decline in interest rates.

  • MoneyShow2 days ago

    General Electric GE- 2019 Top Picks' Mid-Year Update

    George Putnam, editor of The Turnaround Letter, picked General Electric (GE) as his favorite investment idea for 2019. The stock has since risen 44%. Here's the latest update from the leading turnaround specialist.

  • How 2Q Guidance Could Hammer The Bull Market
    Investopedia2 days ago

    How 2Q Guidance Could Hammer The Bull Market

    Corporate profits for 2Q 2019 are expected to be weak, and a growing number of CEOs and other top executives are offering negative guidance.

  • Why Investors Should Want Jeff Immelt on Twilio's Board
    Motley Fool2 days ago

    Why Investors Should Want Jeff Immelt on Twilio's Board

    Tapping Immelt's global experience and vast connections could open new territories and markets at just the right time.

  • General Electric (GE) Stock Sinks As Market Gains: What You Should Know
    Zacks3 days ago

    General Electric (GE) Stock Sinks As Market Gains: What You Should Know

    General Electric (GE) closed at $10.27 in the latest trading session, marking a -0.96% move from the prior day.

  • GE's Weakest Link May Soon 'Dominate Sentiment' Amid Turnaround: UBS
    Investor's Business Daily3 days ago

    GE's Weakest Link May Soon 'Dominate Sentiment' Amid Turnaround: UBS

    Analysts at UBS see the General Electric narrative shifting from survival to a multiyear turnaround, though they downgraded GE stock on valuation concerns.

  • Reuters3 days ago

    US STOCKS-Wall Street treads water as Citi results pressure bank shares

    Wall Street's three main indexes flitted between slight gains and losses on Monday, as declines in Boeing and bank stocks after Citigroup's quarterly report were countered by a rise in technology shares. The third-largest U.S. lender beat profit estimates but reported a decline in interest margins, with its shares marginally lower in volatile trading. The sequential squeeze on Citi's net interest margins by 5 basis points is a cause for worry for investors in other large banks, said Marty Mosby, director of bank and equity strategies at Vining Sparks in Memphis, Tennessee.

  • Barrons.com3 days ago

    GE Stock Loses a Bull as UBS ‘Takes a Breather’

    UBS downgraded General Electric stock to Neutral and cut its price target citing recent stock gains and lingering concerns over competition.

  • Benzinga3 days ago

    This Day In Market History: MSNBC Launched

    Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date. What Happened? On this day 23 years ago, popular cable news channel MSNBC was launched. Where The Market ...

  • TheStreet.com3 days ago

    [video]General Electric Shares Dip After UBS Downgrade, Industrial Cash Flow Trim

    General Electric shares dipped lower Monday after analysts at UBS cut the stock's rating and price target as it suggested investors "take a breather" from its recent gains.

  • GuruFocus.com5 days ago

    Uncommon Cents Investing LLC Buys General Electric Co

    Investment company Uncommon Cents Investing LLC (current portfolio) buys General Electric Co during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Uncommon Cents Investing LLC. Continue reading...

  • ABB Suffers from High Costs & Business Integration Issues
    Zacks6 days ago

    ABB Suffers from High Costs & Business Integration Issues

    Rising expenses, high debt levels and ongoing challenges related to the integration of GEIS impede ABB's growth.

  • Should the Owners of GE Stock Take Their Profits?
    InvestorPlace6 days ago

    Should the Owners of GE Stock Take Their Profits?

    Stand up and take a bow, Larry Culp. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsGeneral Electric (NYSE:GE) stock is having a fantastic year in the markets. GE stock is up 37% year to date, including dividends, in large part because of the moves you've made since becoming CEO on Oct. 1, 2018. However, before you get too excited, it's important to remember that General Electric stock is actually down about 5% in the nine months Culp has been the company's chief executive. There's a lot of work to be done before GE stock can hope to reach $20 for the first time since October 2017. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Normally, I'm big on letting your winners run and cutting your losers quickly. However, GE is a special case. Tim Nash, a contributor to Corporate Knights, the magazine dedicated to clean capitalism, recently pointed out a figure that ought to give those lucky enough (and brave enough) to have bought GE stock at the end of 2018 a reason to think twice about hanging on to General Electric stock. Nash reminded his readers that GE's valuation peaked at a bit below $600 billion in 2000. Today the market cap of GE stock is 85% less than at the beginning of the 21st century. Is it wise to press your luck with a company that's made so many bad calls in the past 19 years?Personally, I believe that J.P. Morgan analyst Stephen Tusa continues to be on target when it comes to evaluating the company's strengths and weaknesses. His recent criticisms of GE's Power business suggested that Larry Culp is more sizzle than steak. In time, we'll know if Tusa's right. In the meantime, the owners of GE stock who are sitting on substantial gains in 2019 are at a crossroads. Should they let their profits ride? Or should they cash in their chips for a handsome gain? Let the Profits RideInvestorPlace contributor Larry Ramer recently suggested that the turnaround of GE stock is real this time because it's got several catalysts that are driving its share price higher. According to Ramer, there are no smoke and mirrors. Exhibit 1: GE snagged $55 billion of engine orders at the Paris Air Show, well ahead of the $31 billion it generated just two years earlier. According to Barron's, taking the aviation's reported numbers at face value and using the valuation multiples of its peers, the division is worth as much as $100 billion, significantly exceeding the current market cap of GE stock. Exhibit 2: The promise of new power infrastructure in both the emerging and developed markets around the world is very good news. The $4-billion contract it recently got as a part of a consortium to build a hydropower plant in Africa is an example of how the company is able to work with Chinese companies. Power Construction Corp., a Chinese construction company that specializes in large infrastructure projects, is part of the consortium. Ramer's made a convincing argument why the moves Larry Culp has made to focus GE are paying off. The question is whether they'll be enough to continue to attract investors to General Electric stock. Sell GE Stock and Don't Look BackThey say you should never sneeze at a profit, especially one as large as GE's. To not consider taking profits off the table would be irresponsible, given GE's destroyed 85% of shareholder value since the turn of the century. InvestorPlace's Ian Bezek recently looked at the pros and cons of General Electric's business. He had lots of good things to say about the moves Culp has made to transform and turn around GE, the best of which was obtaining $21 billion for its biopharma business, which Bezek says appears to have been "a solid price." But ultimately, he came to the conclusion that the "new" GE just doesn't provide the same potential gains for investors that it used to. In other words, while it might regain positive free cash flow by 2020, its earning power won't be nearly as robust as it once was. As recently as 2014, GE had almost $21 billion of free cash flow. After selling so many divisions to tidy up its balance sheet, it's lost the ability to generate significant cash flow. Analysts like Stephen Tusa see that as a big problem. I would tend to agree with them. In my most recent article in June about GE stock, I pointed out that GE had a free cash flow margin of 24% in 2000. That's almost three times higher than its margin is expected to be in 2021. The cash flow-generating machine that once was GE is no longer. Don't look a gift horse in the mouth. Sell GE stock while you've still got a profit to talk about. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Should the Owners of GE Stock Take Their Profits? appeared first on InvestorPlace.

  • GE Stock Is Making the Right Moves to Build Investor Confidence
    InvestorPlace6 days ago

    GE Stock Is Making the Right Moves to Build Investor Confidence

    General Electric (NYSE:GE) shareholders have so far had a good year in 2019. Year-to-date, GE stock is up over 34%.Source: Shutterstock Most of the yearly gains came in the first two months of the year as investors seemed to believe that management would be able to create shareholder value in the long run.Between March and so far in July, GE stock has been trading in a range. Therefore investors are now wondering whether the bulls or the bears will have the upper hand in Q3.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGE stock is expected to report earnings on July 31. Let us take a look at what may be in store for General Electric stock as we approach the earnings season. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond GE's Q1 Earnings and Long-Term CatalystsOn April 30, General Electric reported Q1 2019 earnings, when the group beat earnings and revenue forecasts on orders up 9%. EPS came at 14 cents vs. expected 9 cents a share.At present, the company reports revenue in six business segments: Power, Renewable Energy, Aviation, Oil and Gas, Healthcare, and Capital.General Electric's Aviation, Oil & Gas, and Healthcare businesses delivered steady revenue and earnings growth.GE Aviation business, which is the company's largest segment by revenue, primarily builds and services aircraft engines. Earlier in June, Wall Street welcomed the news that the conglomerate signed lucrative contracts at the Paris Air Show.The segment took significant orders for LEAP engines as well as long-term service agreements (LTSAs). Wall Street pay close importance to service agreements as over close to half of the revenues come from from after-market services.Our readers may be interested to know that several analysts believe that the GE Aviation, which serves both commercial and military aircraft markets, may be worth about $100 billion when GE's own market cap is only 89 billion. Therefore, long-term investors may want to pay attention to the growth trajectory of the Aviation segment.The Oil & Gas Division, which is a cyclical business, has now returned to profitability.In Healthcare, GE has robust exposure to the hospital and lab equipment market. Several analysts see the possibility of an IPO for Healthcare.Within a few quarters, the company is aiming to have a much smaller GE Capital operation. The unit reduced its liabilities as it completed $1.1 billion in asset reductions in the quarter.GE's industrial free cash flow is a key metric for many analysts and shareholders. For the quarter, it showed a loss of $1.2 billion. Shareholders cheered General Electric in general, but especially the Power segment, burned less cash than feared. A Year in Progress for GE StockIn March, CEO Larry Culp called 2019 a "reset year" and urged patience during what has been portrayed as a multiyear turnaround. Following a rotation of CEOs, Culp took over from John Flannery in October. And has had a busy nine months so far.Under new leadership, General Electric has been taking several strategic steps to slim the group down to a few core units and raise cash by divesting from several businesses that no longer serve the group.These moves to clean up the balance sheet include the recent sales of the biopharma segment of the company's healthcare operation to Danaher (NYSE:DHR), a smaller industrial player, for $21 billion and the merger of its transportation business with Wabtec (NYSE:WAB).As a side note, before joining GE, Culp had successfully headed and turned around Danaher, so industry watchers were generally supportive of the sale of the biopharma operation to the group.It has recently been reported that management would also like to sell GE Ventures, a diverse collection of over 100 startup companies.Long-term GE investors know that its Power division has had significant problems an sharp revenue declines in recent years. GE's core power product is the gas turbine.Wall Street is expecting the company to break up the Power segment in the coming quarters, a move that may benefit the GE share price.In other words through asset sales and spinoffs, GE is aiming to generate enough cash to reduce its $121 billion debt load and become more manageable.Last year, Culp took over a company with significant debt and unfunded pension liabilities and investors are understandably still nervous.Yet, overall, Wall Street approves the directional shift which seems to put the company on a stronger ground. And investors are reacting positively to these strategic moves that Culp has been taking.Turnarounds in industrial giants such as General Electric take a long time and never occur in a straight path. In the next earnings report, GE investors are likely to pay attention to improvements in individual segment margins and free cash flow trends. The GE Stock Price NowMany long-term shareholders know that General Electric stock price is a shadow of its former self. Let us go a bit back in history.In August 2000, GE stock hit an all-time high of $60.75. In October 2007, it was hovering around $40. By March 2009, at the heights of the great recession, General Electric's risky balance had sheet pushed the shares down to $5.73.In 2016, GE stock saw a decade-high of $33. But troubles for the General Electric share price began once again with 2017. Losses in the GE Capital unit and plummeting sales and profitability in General Electric's Power business put pressure on the stock.The market decline of 2018 pushed the shares once again to the single digits and in December of last year, the price saw a decade-low of $6.66.As of this writing, GE stock is hovering around $10.2. So Should Long-Term Investors Buy GE Stock?After years of continuous price volatility and decline, it is still proving hard for GE to regain investor trust for the long term.If you follow technical analysis, the long-term GE stock chart has been improving. In other words, bears are not in control of the stock price at this point as the worst has likely already been priced into General Electric stock.From a longer-term technical analysis perspective, I'd expect the stock to move up another 15-20% from the current levels within a year. Shorter-term, the stock will possibly continue to trade in a range, hovering around $10.I am also encouraged by the fact that GE stock's current price-to-sales (P/S) ratio is over 0.73x. Companies generate revenue from the sale of goods and services. Analysts prefer a low P/S ratio, ideally below 1. However, a P/S number between 1 and 2 is more common. To put the metric into perspective, S&P 500's average price-to-sales ratio is 2.1x.Another way to analyze the P/S ratio is to compare companies in similar industries or segments. Our readers may be interested to know that the P/S ratio for Boeing (NYSE:BA) is 2x. For Honeywell (NYSE:HON) stock, the P/S ratio stands at 3.2x. And for 3M (NYSE:MMM) the P/S is almost 4x.Investors who do not yet have a position may want to wait until GE's earnings report in late July to have a better view on the developments within individual segments. Analysts will pay special attention to the sales figures in different units as well as the level of free cash flow.Those investors who already own GE shares, may either consider taking some money off the table or hedging their positions. As for hedging strategies, covered calls or put spreads with Aug. 16 expiry could be appropriate as straight put purchases are likely to be expensive due to heightened volatility. Then, you may reevaluate your long position after General Electric reports earnings. The Bottom Line on GE StockOver the past few months, the narrative for General Electric stock has changed for the better and GE is not making regular negative headlines any more.I believe that many long-term investors are ready to give GE management, which has started dealing with the pressing issues, the benefit of the doubt. Therefore, I'd see any dip in GE stock price an opportunity to go long.The author has GE covered calls (July 12 expiry). More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post GE Stock Is Making the Right Moves to Build Investor Confidence appeared first on InvestorPlace.

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  • 6 Ways to Prepare for the Next Market Decline
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    6 Ways to Prepare for the Next Market Decline

    The U.S. economy is putting up some impressive numbers in GDP, jobs and wages, but many pundits fear that a slowdown is pending. Trade-war fears with China and the European Union remain front and center in the news. And the yield curve is threatening to invert, meaning short-term interest rates may be moving higher than long-term rates. That's often a sign of pending recession on its own.By some measures, the current expansion is now 10 years old, making it one of the longest on record. That seems ancient, but there's no rule that says it can't continue. Australia is in its 28th consecutive year of economic growth.Even so, all good things do eventually come to an end. And for the U.S. (and for Australia, for that matter), economists are looking for slowdowns. Even the Federal Reserve has indicated it is ready to lower short-term interest rates to combat any problems that may arise.Professional investment managers may look to sell a good deal of their holdings to step aside as the market falls. However, for most individuals, timing the market by selling when conditions seem dicey, and buying back when conditions firm up, is a big mistake. Even the pros don't always get it right, and they have armies of analysts and rooms full of technology at their disposal.Here are six ways to prepare for the next stock market decline. The key is to make smaller adjustments to your portfolio to reduce risk and still be ready to participate when the market resumes its upward march. SEE ALSO: 25 Stocks Every Retiree Should Own