9.38 0.00 (0.00%)
After hours: 4:53PM EDT
|Bid||9.38 x 40700|
|Ask||9.38 x 45100|
|Day's Range||9.17 - 9.42|
|52 Week Range||6.40 - 13.25|
|Beta (3Y Monthly)||1.13|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 30, 2019|
|Forward Dividend & Yield||0.04 (0.43%)|
|1y Target Est||10.76|
Aircraft maintenance and airfield testing lead solicitations and contracts awarded this week were two of four major contracts awarded last week by the Department of Defense that are of interest to the community. The other two contracts involve a local company producing laser-guided bomb test sets, as well as dike construction in Corpus Christi.
DEEP DIVE (This is the sixth article in a series about dividend stocks in today’s low interest-rate environment based on interviews with professional investors. Links to the previous articles are below.
Baker Hughes a GE Co. said Monday it closed a secondary offering of 132.25 million Class A shares by General Electric Co. and certain affiliates at a price of $21.50 a share. The oilfield products song said it also repurchased 11.9 million shares of Class B voting from "one or more" of GE and its affiliates, which means GE now holds less than half of the voting power of the company. Baker Hughes stock jumped 2.2% in morning trading, while GE shares edged up 0.1%. Baker Hughes said the deal reduces the number of individuals GE is entitled to designate to Baker Hughes' board to one from five. And Baker Hughes plans to change its corporate name to Baker Hughes Co., with the ticker symbol for the Class A shares to change to "BKR." Baker Hughes stock has gained 4.9% over the past three months, while GE shares have shed 8.6% and the Dow Jones Industrial Average has gained 3.8%.
3D Systems' (DDD) D2P's automatic segmentation tools enable medical practitioners to create accurate, digital 3D anatomic models from medical imaging data.
The market didn't end last week on a high note, but then again, it didn't need to. Even with Friday's 0.07% setback for the S&P 500, the index still mustered just a little less than a 1% advance for the five-day stretch. That makes a third winning week in a row.Source: Shutterstock Oversized Apple (NASDAQ:AAPL) is the reason the broad market could get up and over the hump, falling nearly 2% in Friday's action after investors rethought the costs related to the company's strategy of attracting people to its hardware and new streaming service. That impact was more than smaller names like General Electric (NYSE:GE) could offset. GE was up nearly 1% on the last day of last week, buoyed by optimism surrounding what should amount to a $5 billion debt reduction, funded by asset sales. * 10 Recession-Resistant Services Stocks to Buy As for names worth exploring as Monday's action gets going, however, the stock charts of Facebook (NASDAQ:FB), Microsoft (NASDAQ:MSFT) and Merck (NYSE:MRK) are of the most interest. Here's why.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Microsoft (MSFT)There's no denying Microsoft shares have been one of the market's best and most reliable performers for years now. Even the headwind that hammered most names late last year wasn't horrific for MSFT stock, and shares recovered quite nicely this year from that lull.This year's overheated rally looks like it has run its full course though, progressing even faster than the 2017/2018 gain. Although it's not past the point of no return yet, the action since late July suggests the bears are taking their shot. They've been nice enough to leave clear clues. * Click to EnlargeThe biggest clue to speak of is the converging wedge shape that's formed since July. The lower boundary, plotted in blue, traces all the lows going back to December's low. * Although not overwhelmingly so, the volume tide has started to lean bearishly. Should the Chaikin line on the weekly chart fall under zero, that may be the proverbial tipping point. * As for a plausible downside target, the past two major setbacks have pulled Microsoft shares just below the 200-day moving average line, marked in white on both stock charts. Merck (MRK)Shares of drugmaker Merck have dished out a healthy, even if at times uneven, rally over the course of the past year and a half. Even factoring in the current lull, MRK stock is still up 56% from its early 2018 low.The complexion of that advance has slowly but surely -- maybe even imperceptibly -- taken a turn for the worst though. While still seemingly in bullish mode, the momentum is fading and the pokes at key technical floors are more frequent and more potent. * 7 Tech Stocks You Should Avoid Now * Click to EnlargeThe slowdown of the advance is easily indicated on the daily chart, with each resistance line, marked in yellow, plotted at a shallower direction than the prior one. * It's not a detail even the most focused of chart watchers would notice or care about, but each peak of the Chaikin line since the beginning of this year has been lower than the past, underscoring the slowdown. Ditto for the MACD crossunders. * So far the 200-day moving average line, marked in white on both stock charts, has held up as a floor. The straight-line support that tags all the key lows since early 2018, however, was tested again last week. That's the make-or-break level, marked as a dashed blue line on the weekly chart. Facebook (FB)It's interesting. All stock charts demonstrate some degree of interplay with their moving average. Sometimes it means a lot, and sometimes it means little. It's something that at the very least has to be respected though.To that end, Facebook has been strangely responsive to its moving average line, sometimes being stopped and reversed at them, and other times being blasted past them when they're passed. That's what makes the past couple of weeks so curious … and a little bearish. * Click to EnlargeThe chief worry here is how FB stock tested but failed to hurdle the 50-day moving average line, plotted in purple on both stock charts, this month. As the daily chart shows, the 50-day line has been a biggie. * That being said, there are still a couple of other, albeit less meaningful, moving average lines that have been boundaries in the past that could become a boundary again. * Fueling the prospect of more downside is the fact that, over the long haul, FB stock is no stranger to major moves. The stock is still closer to being overbought than not from this year's rebound move, as indicated by the weekly chart's RSI tool.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post 3 Big Stock Charts for Monday: Merck, Facebook and Microsoft appeared first on InvestorPlace.
The Federal Reserve meeting is scheduled for September 17-18. At its last policy meeting in July, the Fed lowered rates by 25 basis points.
Artificial intelligence in housing won’t just eliminate Realtors. It could completely change the way we buy, sell and live.
Keep betting on Larry Culp to turn around General Electric. One year into his tenure at the top, Culp faces steep challenges, and the stock market isn’t yet convinced he can pull it off. A corporate turnaround has three phases.
General Electric's (GE) tender offerings to purchase its U.S. dollar and Euro-denominated debt securities will help it strengthen the balance sheet.
General Electric CEO Larry Culp spent time with investors Thursday at an investor conference in California. Here’s what he said about two big issues facing GE: debt and restructuring.
GE will receive $2.7 billion in net proceeds from reducing its stake in Baker Hughes. GE announced tender offers for its dollar- and euro-denominated bonds.
(Bloomberg) -- General Electric Co. plans to buy back as much as $5 billion of bonds as the manufacturer seeks to cut its debt load as part of its turnaround.The repurchase will cover up to $2.5 billion of dollar debt and the equivalent of $2.5 billion (2.28 billion euros) of euro-denominated notes, GE said in a statement Thursday. The company said it wouldn’t expand the size of the buyback plan.Reducing debt is a cornerstone of Chief Executive Officer Larry Culp’s attempt to overhaul GE after one of the worst slumps in the company’s 127-year history. Since taking the helm last year, Culp has been pruning operations to focus on making jet engines, power equipment and medical scanners while tackling more than $100 billion in borrowing.“We’re doing what we said we’d do,” Culp said at a Morgan Stanley conference Thursday. “The reset year thus far here in early September is playing out fundamentally in line with what we anticipated, but we know we have a lot more to do both with respect to the balance sheet and the way we run the business.”The shares fell 1.1% to $9.26 at the close in New York. GE has advanced 27% this year, compared with a 22% gain for a Standard & Poor’s index of U.S. industrial companies. GE lost more than $200 billion in market value during the two-year period ending Dec. 31, as profits dropped amid flagging demand for gas turbines and high costs.The company said Wednesday it would raise about $2.7 billion by cutting its holdings in oil-services company Baker Hughes to a minority stake. That sets GE up for about $38 billion in asset sales including the pending $21.4 billion sale of GE’s bio-pharmaceutical business to Danaher Corp., Culp said.GE reiterated Thursday that it seeks to reduce the debt load at the industrial businesses to under 2.5 times a measure of earnings and is evaluating other options to cut debt, including pension funding and intercompany debt repayment between GE and its financial services unit.That means GE will have to erase about $25 billion of debt at the industrial businesses from $51 billion at the end of the second quarter, Culp said. Improving profits at the company’s businesses will take more time, he said.“With respect to running the businesses, this is what takes longer, both in terms of how we operate and having that translate into results,” Culp said.Rate ImpactThe drop in interest rates will add about $7 billion to GE’s pension obligations and deliver a hit to insurance-reserve assumptions of “somewhere south” of $1.5 billion, Culp said. GE made contributions of $6 billion to the pension fund last year that covers the company through next year, he said.GE shares last month posted their biggest one-day plunge in 11 years after financial investigator Harry Markopolos skewered the company’s accounting. Markopolos, best known for blowing the whistle on Bernie Madoff, accused GE of fraud over the handling of its insurance and oil businesses and said “impending losses will destroy GE’s balance sheet.”The Boston-based company called the claims meritless, with Culp criticizing the report as “market manipulation, pure and simple.” A number of Wall Street analysts and some prominent investors came to GE’s defense as well.GE is being more transparent about its financial situation to “demystify it as much as we humanly can,” Culp said.Major IssuerThe company said in March that it was looking at buying back debt, and said in January that it doesn’t expect to issue new debt until 2021. GE is one of the 10 biggest issuers of corporate bonds in the Bloomberg Barclays US Corporate Bond index outside of the financial sector.The buyback offer expires on Oct. 9. Holders that submit their bonds by Sept. 25 are eligible to receive an early participation premium.The dollar-denominated bonds that can be bought back mature between 2022 and 2044, while the euro-denominated notes are due between 2022 and 2037. The company said $8 billion of dollar-debt and 10.5 billion euros of euro-denominated debt is eligible for the offer.JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group Inc. are managing the buyback. D.F. King & Co. is serving as the information and tender agent.(Updates with asset sales in fifth paragraph.)\--With assistance from Brendan Case, Molly Smith and Tony Robinson.To contact the reporters on this story: Claire Boston in New York at email@example.com;Thomas Black in Dallas at firstname.lastname@example.orgTo contact the editors responsible for this story: Nikolaj Gammeltoft at email@example.com, Dan Wilchins, Christopher DeRezaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The SPDR S&P 500 (NYSEARCA:SPY) hit new all-time highs on Thursday. Who would have predicted that for the stock market today?Not many were looking for such a robust rally to take place over the past few trading sessions. But InvestorPlace readers were ready. They knew that the stock market was trading in a well-defined range throughout the month of August and they knew when that range resolved to the upside.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOnce resistance gave way and we saw follow through from the bulls, that's when it was clear new highs were possible. In fact, we wrote: "Above resistance could send the S&P 500 back to 3,000, while a move below support likely brings up a test of the 200-day moving average."So what's causing this rally anyway? Markets liked the de-escalating tone between China and the U.S., even though there some reports say the trade war will not likely be resolved any time soon. More Quantitative Easing, Please?For those looking for more quantitative easing from the Federal Reserve, don't hold your breath. The Fed is scheduled to make its rate decision next week on Wednesday, Sept. 18. As it currently stands, the Fed Funds Rate is pricing in an 88.8% probability of a 25 basis point cut next week. The other 11.2% probability has the Fed keeping rates unchanged.Put simply, the U.S. is not in the economic position -- either with low growth or negative interest rates -- to warrant more stimulus. But the European Union is. * 10 Battered Tech Stocks to Buy Now The European Central Bank announced a 10-basis-point cut in its deposit rate to -0.5%, in-line with expectations. The ECB also announced that it will restart its QE program to the tune of $20 billion per month beginning Nov. 1. While ECB president Mario Draghi says there's only a low chance chance of an E.U. recession, those odds have increased.QE should be a boost, but it's concerning that it's needed after a near-decade of various policies. Movers in the Stock Market TodayIt was an exciting day in the stock market today, if not just because equities are flirting with their all-time highs. However, not all assets are moving favorably.While gold prices -- and the SPDR Gold Shares (NYSEARCA:GLD) -- closed higher on the day, GLD finished well off its morning highs. The can be said for bonds too, via the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT). The fall in bonds helped pave the way for bank stocks to continue their rally on Thursday, even as they approach resistance.The Top Stock Trades column took a closer look at the bank stocks earlier today.What else was moving?Aurora Cannabis (NYSE:ACB) fell roughly 10% and hovered near its session lows in the stock market today. The decline came after the company reported its quarterly results, missing revenue expectations and showing margin pressure. The woes of the cannabis space continue.Shares of General Electric (NYSE:GE) fell 1.2%, but Baker Hughes (NYSE:BHGE) was making waves after the former became a seller of the latter.BHGE opened notably lower on the day and fell to $21.36. However, it finished higher by 1.5% at $22.63 despite GE announcing it will cut its stake from 50.3% to roughly 39.5% as it looks to raise capital.The IPO market remains a mixed bag, with the latest shake-up coming from SmileDirectClub (NASDAQ:SDC). Shares priced at $23, above the $19-$22 range. But that didn't please investors, as shares tumbled 27.5% in their debut. Ouch. Heard on the StreetShares of Activision Blizzard (NASDAQ:ATVI) got off to a hot start in the stock market today. However, the stock only managed to climb 1% by the time the market closed. That's despite Nomura analysts upgrading the stock to "buy" and raising their price target from $49 all the way to $64. The target implies more than 16% upside from Wednesday's closing price.Wells Fargo analysts are ringing the bell on Caterpillar (NYSE:CAT) and Deere (NYSE:DE). They downgraded both stocks from "outperform" to "market perform," assigning price targets of $170 and $143, respectively.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Stock Market Today: Should Investors Expect More Quantitative Easing?Â appeared first on InvestorPlace.
(Bloomberg Opinion) -- It’s been a busy week for General Electric Co. On Tuesday, the company announced it would sell another chunk of its stake in its Baker Hughes oil and gas venture, ultimately raising about $3 billion. Two day later, it said it would buy back up to $5 billion of bonds. This activity gave CEO Larry Culp something concrete to point to on Thursday when he took the podium at a Morgan Stanley conference to update analysts and investors on the industrial conglomerate’s turnaround progress. “We’re doing what we said we would do," Culp said. That means "tending to the balance sheet, making sure that we’re strengthening our overall financial position, and making sure that we’re in a position to run the businesses better."GE’s efforts to reduce its bloated debt load are a positive; that’s what it’s supposed to be doing. Culp’s ability and willingness to be proactive is undoubtedly an improvement over former CEO John Flannery’s long stretches of paralysis. But the timing of this flurry of deleveraging steps strikes me as slightly curious.Most companies wouldn’t go around buying back bonds when rates are so low; they would swap them out for new bonds at better terms. GE, however, has pledged not to add any new debt through 2021, and appears to be trying to signal its liquidity is such that it doesn’t need to. Yet Culp has also talked about running the company with a higher cash balance in order to reduce its reliance on commercial paper. And the $21.4 billion divestiture of GE’s biopharmaceutical business to Danaher Corp. – the linchpin in Culp’s debt reduction plan – hasn’t closed yet.Perhaps the Baker Hughes stake sale and the bond buyback were planned well in advance; perhaps GE is just being opportunistic and taking advantage of recent trading conditions. I can’t help but notice, though, that GE’s actions this week appeared to hit at the heart of criticisms made by Bernie Madoff whistle-blower Harry Markopolos last month in a lengthy, explosive report.Markopolos has an agreement with an undisclosed hedge fund that will give him a share of the profits from bets that GE shares will decline. GE has called his allegations “meritless.” His report claimed GE needed to immediately funnel $18.5 billion in cash into its troubled long-term care insurance business and accused the company of avoiding a writedown on its Baker Hughes stake. One way to read the debt buyback is that GE must not be too worried about a fresh cash shortfall at the insurance unit if it’s willing to plop down $5 billion to repurchase bonds on a voluntary basis. And GE’s stake sale this week will bring its holdings in Baker Hughes below 50%, which will prompt a charge that could be in the ballpark of $8 billion to $9 billion but also allow management to put one more inevitable writedown behind them.(1)There were a number of flaws in the Markopolos report, not least his liberal use of hyperbole, but it struck a nerve with investors who were already wary of more negative surprises at GE and the opaqueness of its underlying financials. Whether or not there’s any truth to his allegations, being on the hot seat like that appears to have shaken GE executives as well.What’s most telling is the one Markopolos criticism that GE hasn’t yet moved to address, and that is the lack of detailed transparency in its financial statements and the seeming differences in its aviation unit’s accounting relative to engine partner Safran SA. Culp missed an opportunity when he became CEO to move away from GE’s historical tendency to rely on a myriad of adjustments and a micromanaging of Wall Street expectations to bolster the appearance of the company’s results. This week’s actions and Culp’s presentation were in a way a reminder that of all of Markopolos’s claims, questionable as the others may be, that one has the potential to stick.Otherwise, the key takeaways from Culp’s Thursday presentation were that he expects the drop in interest rates to result in a “somewhere south” of $1.5 billion hit to its GAAP reserve assumptions for the long-term care insurance business, before accounting for any other adjustments as part of a third-quarter test. GE's projected pension benefit obligations, meanwhile, will also increase because of the drop in interest rates. Offsetting that is an improvement in returns, but GE is still looking at an impact in the $7 billion range, Culp said. Neither of those figures are disastrous, but serve as a reminder that it’s not just regular old debt that’s looming over GE. There are many other demands on its cash.Culp gave no update to GE’s expectation for roughly zero dollars in industrial free cash flow this year. Interestingly, he did allude to the idea that the company’s forecasts for 25 to 30 gigawatts of gas turbine demand this year may prove overly dire; still, I remain skeptical of GE’s ability to drive a huge surge in free cash flow at the power unit over the next few years. Other challenges at the company include persistent questions about the true underlying free cash flow of the aviation unit, the loss of cash-flow contributions from divested assets and the need to backstop its huge underfunded pension balance with more cash. Culp didn't rule out additional contributions to the pension over the next few years.Progress on the debt reduction front is good, but without a significant increase in free cash flow, it will be a while before GE can shift investors’ focus elsewhere. (1) GE said in July that deconsolidating Baker Hughes's results from its own would prompt a $7.4 billion writedown, based on the company's stock price at the time of $24.84. This week, it said every $1 change in Baker Hughes's stock price would increase or decrease that number by about $500 million. GE's share offering was priced at $21.50 and the stock was trading on Thursday for about $22.50.To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Baker Hughes said it was committed to safety and that it operates its oilfield services facility in Kenai in compliance with the law. "We vigorously deny the claims made against us, and will exercise our right to present evidence that the allegations are without merit. We have confidence in the judicial system and that the full facts will be presented in court,” a spokesperson said.
General Electric Company (NYSE: GE ) announced Wednesday that it will divest part of its stake of Baker Hughes A GE Co (NYSE: BHGE ) and released pricing details. What Happened GE said in a press release ...
The move will take GE out of majority control over Baker Hughes, a change that the duo have worked toward for more than a year.
GE will sell about $3 billion of Baker Hughes stock, a move that would take it from a majority owner, with just over a 50% stake in the company, to a minority one.