9.92 -0.04 (-0.40%)
After hours: 5:24PM EDT
|Bid||9.95 x 36900|
|Ask||9.95 x 1300|
|Day's Range||9.80 - 9.96|
|52 Week Range||6.40 - 14.99|
|Beta (3Y Monthly)||0.92|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 18, 2019 - Jul 22, 2019|
|Forward Dividend & Yield||0.04 (0.40%)|
|1y Target Est||12.76|
GE shares have dropped by about 3% since a top analyst who follows the company for JPMorgan said the company was sugar coating guidance for its power business in a note last week. Yahoo Finance's Zack Guzman & Heidi Chung discuss with former General Electric Vice Chair Beth Comstock.
First announced at CES, GE Lighting’s new C by GE Full Color Lights, Tunable White bulbs, Smart Switches, and a Smart Plug are now available to help consumers do more at home. All customizable to routines and compatible with the leading voice assistants, these products carry industry-first features and/or partnerships to drive new opportunities across the home.
Give credit where credit is due. The new leaders of General Electric (NYSE:GE), most notably CEO Larry Culp, have pledged to be more transparent with investors. That honesty already has boosted GE stock, which has gained some 40% so far this year.Source: Shutterstock As bearish as I've been on GE, the optimism makes some sense. Culp worked wonders at Danaher (NYSE:DHR). GE has some valuable assets. Its problem areas -- notably Power and GE Capital -- have weighed on the stock in part because the bad news never seemed to end. As I wrote a little more than two years ago, GE clearly lost investors' trust. In the interim, Culp, CFO Jamie Miller, and other executives have made regaining that trust a priority.The problem -- as General Electric stock climbed above $10 yesterday before falling back -- is that GE is being honest about real problems with the business at the moment. Meanwhile, GE stock might seem "cheap" given its long fall from $30+, but it still has a market capitalization of $86 billion -- and a larger amount of debt and pension expense.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCulp and Miller have time to fix General Electric and they well might succeed. But there's a long way to go and still some success priced in at $10. GE Gets HonestIt's an interesting argument as to whether management's increased transparency has helped GE stock. Certainly, there have been short-term relief rallies, starting with the 7% pop that came when Culp was named CEO at the beginning of October. In late January, GE missed estimates in fourth quarter earnings -- and the stock still soared after Culp projected improvement in the struggling Power business, albeit not until 2020. Meanwhile, 2019 guidance in March similarly disappointed, and yet GE stock rose again, with Culp calling 2019 a "reset year." * 10 Retirement Stocks That Won't Wilt in a Bear Market When Culp talks, investors cheer. And he literally has put his money where his mouth is, buying more than $2 million in GE stock last year. He's also laid out a strategy for GE to be slimmer, more nimble and more financially solid. The dividend was cut again, saving cash flow to pay down debt, and assets are up for sale to drive further deleveraging. Importantly, GE has been crystal-clear in detailing those strategies.The latest example of that came last Wednesday. JPMorgan Chase (NYSE:JPM) analyst Stephen Tusa long has been bearish -- and right -- on General Electric stock. In a note released Wednesday morning, Tusa said the company still was managing the headlines in its Power business, seemingly highlighting a big order number cited by Reuters on Tuesday, a report which Tusa said overstated the early success of the turnaround in Power.It hardly seems a coincidence that hours later, CFO Miller told a conference that the company still expected "significantly negative" free cash flow from Power this year, and that Q1 orders didn't signify a change in trend. Indeed, it looks like GE management wants not even the appearance of trying to obscure the real problems facing Power -- and the business as a whole. Will It Help GE Stock?It's a worthwhile strategy. But it's also worth noting that for all the optimism so far, it hasn't actually worked. General Electric stock is down almost 9% from where it traded the day before Culp's hiring was announced. The YTD rally seems due at least in part to the recovering broad market -- and many of the short-term bumps driven by management commentary have soon fizzled.Meanwhile, GE is being honest but it's important to listen to what management actually is saying. Miller said Wednesday that margins in Power won't recover for at least three years. Culp said in March that free cash flow outside GE Capital would be negative this year.The sale of GE Biopharma to Danaher for $21.4 billion will help the balance sheet. But it also sends a key earning asset out the door, and -- again, according to management -- limits the likelihood of a spin-off of GE Healthcare. Even with GE Capital, which has driven several multi-billion dollar charges in recent years, Culp hasn't made any promises that all the problems are solved. General Electric Stock Has a Long Road AheadThe transparency coming from GE is welcome … and a long time coming. Shareholders and potential investors deserve to know what they're getting into. Perhaps more importantly, a turnaround -- for GE or for any other company -- can't happen until or unless management truly understands what needs to be fixed. * 7 Stocks to Buy that Lost 10% Last Week But the problems here are real. GE stock hasn't collapsed because of negative coverage from Tusa, or pressure from short sellers, or just because former CEOs Jeff Immelt and John Flannery weren't paying attention. The power industry on the whole is shrinking. GE Capital took risks similar to those that hurt big banks like Bank of America (NYSE:BAC) and Citigroup (NYSE:C) last decade; it simply took this long for some of the costs to come to light.So while it's worth appreciating the newfound honesty at GE, it's also worth listening to that honesty. Cash flow is negative. Power is years away from improving while the market for gas-powered turbines may continue to shrink. (Admittedly, some observers see growth.) GE Capital may still have some issues to iron out.Aviation, Renewable Energy, and Healthcare have value but I argued a year ago that even with that strength, the fair value of GE stock looked to be about $9-$11 per share. Honesty is helpful, but it doesn't change that core problem.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Honesty Is A Good Start But Not Enough To Boost General Electric Stock appeared first on InvestorPlace.
Procter & Gamble has completed the sale of 6.5 acres of its Gillette campus in South Boston, reportedly for $218 million.
Over the past year, General Electric (NYSE:GE) stock has endured its share of controversy. Once one of the most iconic U.S. companies, General Electric was booted from the Dow Jones Industrial Average last June, marking the first time in more than a century that GE stock was not a member of the blue-chip index.Source: Shutterstock Then, last October, in a move aimed at further shoring up the company's balance sheet and reducing costs, General Electric cut its dividend for the second time in 2018. Once a dependable dividend name, General Electric stock now has a paltry quarterly dividend of a penny per share.There are times when companies ensconced in controversy rebound. General Electric stock, while not anywhere close to being all the way back, is rebounding in epic fashion in 2019 with a year-to-date gain of 41%. That is good news, but the resurgence in General Electric stock this year does not mean all the controversy is behind the embattled company.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Yield REITs to Buy (Even When the Market Tanks) Earlier this week, General Electric tempered enthusiasm regarding a recovery in its power-plant business, prompting at least one analyst to speculate the company is not being entirely transparent about the goings on at that unit."On Wednesday, GE said its power unit will need at least three years to halt its cash hemorrhage and restore its prior cash flow to double-digit cash margins," reports Reuters. "GE has said it expects to lose up to $2 billion in cash this year, mostly due to the power unit." Skepticism and GE StockIn a note out Wednesday, JPMorgan analyst Steve Tusa displayed skepticism about GE's ability to quickly turnaround the power-plant business while noting the company appears more committed to managing headline risk rather than improving the power-plant business."We see nothing here to change our negative view on Power, more so evidence of a company that appears to manage to headlines rather than on-the-ground fundamentals," said Tusa in a note to clients.The analyst is a noted GE bear. Last month, Tusa lowered his rating on General Electric stock to Underweight from Neutral while lowering his price target on the shares to $5 from $6. That is well below the average analyst price target of $12.76. GE stock traded just over $10 as of this writing.While there are reasons to be concerned with GE's power-plant business. Data from the company indicates the business is notching some growth. In the first quarter, GE's power-plant business booked six orders for the HA-class turbines, up from zero a year earlier. That means GE landed more orders than rivals Mitsubishi Hitachi Power Systems and Siemens AG.On the other hand, there are potential long-term risks in the gas-powered turbine business for any company with exposure to this industry because prices for alternative energy are declining, making cheaper and cleaner solar and wind more attractive to utility providers. The Bottom Line on GE StockThe power-plant unit is not the only potential risk to General Electric stock. GE's effort to sell its biopharma business to rival conglomerate Danaher Corp. (NYSE:DHR) is in jeopardy and that is significant because GE is expecting to land $20 billion in much needed cash for that sale.Weakness in the life sciences market could see the deal price trimmed or scrapped altogether, according to one analyst.Much of GE's efforts to bolster its balance sheet revolve around asset sales, so if the sale to Danaher fails, GE probably spins off the life sciences unit via an initial public offering.With General Electric stock up 41% this, controversy surrounding the power plant and no guarantees on asset sales, a case can be made that a lot of good news is already baked into the shares and near-term upside from current levels could be limited.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Power Plant Woes Could Stall the GE Stock Comeback appeared first on InvestorPlace.
The U.S. FBI is investigating corporate giants Johnson & Johnson, Siemens AG, General Electric Co and Philips for allegedly paying kickbacks as part of a scheme involving medical equipment sales in Brazil, two Brazilian investigators have told Reuters. Brazilian prosecutors suspect the companies channelled illegal payoffs to government officials to secure contracts with public health programs across the South American country over the past two decades. Brazilian authorities say more than 20 companies may have been part of a "cartel" that paid bribes and charged the government inflated prices for medical gear such as magnetic resonance imaging machines and prosthetics.
The U.S. FBI is investigating corporate giants Johnson & Johnson, Siemens AG, General Electric Co and Philips for allegedly paying kickbacks as part of a scheme involving medical equipment sales in Brazil, two Brazilian investigators have told Reuters. Brazilian prosecutors suspect the companies channeled illegal payoffs to government officials to secure contracts with public health programs across the South American country over the past two decades. Brazilian authorities say more than 20 companies may have been part of a "cartel" that paid bribes and charged the government inflated prices for medical gear such as magnetic resonance imaging machines and prosthetics.
As expected, China retaliated against the U.S.’s increased tariffs by vowing this week to raise levies on $60 billion of goods, while also exploring other measures. Take these last two with a grain of salt, as it’s unclear how China would execute this kind of drastic action without painful consequences for itself. It’s unlikely China never buys a Boeing plane again, but the two fatal crashes of its 737 Max and the subsequent grounding of the jet make Boeing an easier target.
J.P. Morgan analyst Stephen Tusa said in a note that 3M's "premium valuation is unjustified by undifferentiated fundamentals," with growth excluding mergers and acquisitions likely decelerating and benefits to margins fading. 3M's quarterly dividend is "on watch for a cut, after 37 straight years of increase," Tusa said. J.P. Morgan pointed to 3M's growing list of liabilities as another risk to the company's earnings-per-share growth.
The rising debt load at U.S. cemetery operator StoneMor Partners LP has helped bring it to death's door, but specialized lending funds are clamoring to refinance the company's borrowings, according to sources familiar with talks. In the wake of the financial crisis when interest rates sank to historic lows, StoneMor borrowed over $300 million to acquire cemeteries and funeral parlors. The strategy added the deathcare company to a generation of companies now saddled with debt that has limited growth prospects.
Zacks Value Trader Highlights: General Motors, General Electric, Chemours, Camping World and L Brands
The gettin’ is still good for KPMG LLP when it comes to General Electric Co. audits — while the gettin’ can be gotten, anyway. The state’s largest public company by revenue, GE paid KPMG $133.3 million in fees last year. It takes approximately 400 KPMG partners to handle the GE audit.
Wayfair, the Boston-based online furniture retailer, joined the ranks of Massachusetts businesses with a spot on Fortune magazine’s list of 500 of the highest-grossing companies in the United States.
A big part of GE's overall "reset" is fixing its power business, which was once headquartered in Schenectady and still makes turbines there.
Investment company Bruce & Co. buys Compass Minerals International Inc, General Electric Co during the 3-months ended 2019Q1, according to the most recent filings of the investment company, Bruce & Co.....
Danaher might be experiencing buyer’s remorse after GE biopharma competitors posted weak results. The purchase agreement might make remorse moot.
Iraq has contingency plans for any stoppage of Iranian gas imports for its power grid but hopes no such disruption will take place, Oil Minister Thamer Ghadhban said on Thursday. Iraq relies heavily on gas from Iran for its electricity supply, which is stretched during hot summer months.
GE's Power Business Might Lose Significant Cash in 2019(Continued from Prior Part)General Electric outperformed its peersGeneral Electric (GE) stock has been rising since the beginning of the year. The stock has risen nearly 41% in 2019. General