|Bid||142.77 x 900|
|Ask||142.93 x 800|
|Day's Range||140.75 - 143.18|
|52 Week Range||94.59 - 143.18|
|Beta (3Y Monthly)||0.85|
|PE Ratio (TTM)||42.08|
|Earnings Date||Jul 18, 2019|
|Forward Dividend & Yield||0.68 (0.48%)|
|1y Target Est||144.33|
WASHINGTON, June 18, 2019 /PRNewswire/ -- Danaher Corporation (DHR) announced today that it will webcast its quarterly earnings conference call for the second quarter 2019 on Thursday, July 18, 2019 beginning at 8:00 a.m. ET and lasting approximately 1 hour. The call and an accompanying slide presentation will be webcast on the "Investors" section of Danaher's website, www.danaher.com, under the subheading "Events & Presentations." A replay of the webcast will be available shortly after the conclusion of the presentation and will remain available until the next quarterly earnings call. You can access the conference call by dialing 866-503-8675 within the U.S. or +1 786-815-8792 outside the U.S. a few minutes before 8:00 a.m. ET and notifying the operator that you are dialing in for Danaher's earnings conference call (access code 8699843).
Danaher Corp NYSE:DHRView full report here! Summary * Perception of the company's creditworthiness is negative * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is extremely low for DHR with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting DHR. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding DHR are favorable, with net inflows of $9.59 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Industrialsis falling. The rate of decline is very significant relative to the trend shown over the past year, and is accelerating. The rate of contraction may ease in the coming months, however. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator. DHR credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Examining Danaher Corporation's (NYSE:DHR) past track record of performance is an insightful exercise for investors...
The Zacks Analyst Blog Highlights: Berkshire Hathaway, salesforce, Danaher, Halliburton and American Airlines
Danaher (DHR) stands to gain from solid product portfolio, acquisitive nature and shareholder-friendly policy. High costs and debts as well as forex woes remain concerning.
The life sciences stocks have been rallying lately, and while some of that strength has stemmed from market rotations, Jim Cramer says most of the move is coming from solid execution. Danaher, is a well-run company that has an excellent track record of making smart acquisitions to turn good businesses into great ones according to Cramer. In the daily bar chart of DHR, below, we can see a sideways consolidation pattern from last June until early February.
With all due respect to the analyst community, please stop handicapping General Electric (NYSE:GE) as if it's possible to know where the company will be a year from now. Likewise to investors, be wary of treating GE stock as if it reasonably compares to peers such as Honeywell International (NYSE:HON) or Danaher (NYSE:DHR).Source: Shutterstock GE is, more than anything else right now, an enigma… an idea. Choosing not to acknowledge it as such could prove frustrating.That's not intended as an insult to parties on either side of the capital-markets table, to be clear. The aforementioned pitfalls are easy to stumble into; I've stumbled into both traps more than once myself.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Quality Cheap Stocks to Buy With $10 But, as a guy who's been in the investing business for 20 years now (with the gray and thinning hair to prove it) I can say I've seen, heard, and done it all, most of it twice.That includes the current General Electric story and all of its nuances; same story, different name. And, the fact of the matter is, nobody has a clue General Electric is really going. They're all guessing. We're all guessing.There is one thing I am confident of though. That is, if GE stock can clear one key technical hurdle, all that rhetoric is going to turn bullish in a hurry, driving what could be a decent bullish swing trade that may well flag the long-awaited, bigger turnaround. A Closer Look at GEIt's not a reality too many in the financial media and investment-advice business care to concede, but sometimes, our best guesses still aren't all that good.It's a rarity, to be fair. People paid to pontificate tend to have a rather firm grip on things that are taking shape with the economy, the market and with individual companies.This isn't one of those times though. General Electric has thrown a lot of people for a loop.But, at least the professionals at this dance have to chime in with something on the company.Reality: The sale of General Electric's assets like its locomotive arm to WabTec (NYSE:WAB) and the rumored liquidation of its aviation finance arm are seemingly steps in the right direction. GE needs cash to shore up liquidity problems, and selling assets is the quickest way to raise liability-free cash. Bear in mind, however, the company is selling revenue-bearing and in many cases profit-driving assets.Some say there's more upside to paring itself down, but others are less convinced divestitures are the right move given the company's cash-flow challenges.Its Power arm is in trouble too. Let's not pretend like that's not at least partially the result of persistently tepid oil and gas prices though, admittedly underscored by a lack of product development.The former remains entirely out of the company's control, no matter how well General Electric regroups its power business from the inside.The biggest X factor of all though is the unknowable. Right now, there are simply an overwhelming number of unknowables muddling up a clear view of the company's fiscal strength.Perhaps more so than any other outfit seen in the modern market era, General Electric is a moving target… multiple moving targets, in fact. Nobody really knows what lies ahead, even if their thesis seem rock-solid and well-polished. Looking Ahead for GE StockThat's not to suggest GE stock has to be avoided. Indeed, General Electric has the potential to be very rewarding for the right kind of trader.The key is simply understanding that the chart of GE stock right now is driving opinions of the stock as much as it's being driven by them.To that end, we're all lucky in the sense that investors have collectively, unconsciously drawn their line in the sand. It's $10.48, where GE stock has peaked a couple of times since March.It's working on another test of that technical ceiling right now, but is starting that effort with the benefit of its first streak of higher lows since 2016.Notice GE shares have also crossed back above the 200-day moving average line, plotted in white, and this time seem a little more willing to stay here.Zooming out to the weekly chart we can see this week's strength presses against the line that's capped all the key highs going back to May of last year.Clearly there's more work to be done. But, if General Electric shares can move above its recent ceilings, it becomes much easier to justify buying.It also becomes much easier to justify upgrades; don't think for a minute analysts' handling of the turnaround story aren't being scrutinized more than they normally might for other names.Just wait and watch. The Final WordI'm all too aware that penning these kinds of ideas is maddening to a whole slew of people… professionals as well as amateurs. The notion that a chart can lead to opinion changes rather than the other way around is often dismissed. And, there was a point in time, years ago, when such an idea should have been dismissed.The market's changed though. Fundamentals don't matter nearly as much as stories do, assuming that fundamentals mean anything anymore. In the case of General Electric right now, they may not.Whatever the case, don't kid yourself about what GE stock is here. You're not making a bet on the company by buying it now, or after any cross above $10.48.You're making a bet on how the masses are going to feel about GE at some point in the foreseeable future. Indirectly, you're betting on how analysts are going to change their opinions when they absolutely have to.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post The Problem Is, GE Stock Is Just Unknowable Right Now appeared first on InvestorPlace.
Hudson Bay Capital Management is an NYC-based hedge fund that was launched in 2005 as a successor to Gerber Asset Management, a proprietary investment company. Both firms were founded by the same person – Sander Gerber, who is the current Portfolio Manager, Managing Partner, CEO, and CIO of Hudson Bay Capital Management. Last year, the […]
Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that's why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an […]
One-third of the way into 2019, the U.S. stock market looked more resilient than ever with the bull snapping back from a devastating correction like a bovine half its age. Stocks hit a new high on April 30, delivering an early 2019 return of 18.3%, including dividends--nearly two years' worth of the long-term average gain for stocks in just four months. Assuaging worries of a looming recession, the economy grew at a robust 3.2% in the first quarter of 2019. Instead of earnings dipping into negative territory, as analysts had expected, corporate America ended the first quarter slightly in the black. And perhaps most important, the Federal Reserve Board pivoted from telegraphing as many as three rate hikes in 2019 to zero rate hikes. Then President Trump tweeted about trade. Stocks have been volatile since, and the downdraft served as a swift reminder that substantial risks are building in this aged bull market and in an economic expansion that in July becomes the longest one ever.With the easy gains behind us this year, we think you'll do best by scouting stocks that can eke out reliable earnings growth in a low-growth economy and looking to dividends to bolster returns. We favor large-company stocks over small, and we think investors can find good candidates in a number of market sectors and in overseas markets--but you'll have to be discerning and selective within each category. In the second half of 2019, investors will have to stay defensive, while also taking advantage of tactical opportunities as they arise.Here are five stocks we believe fit the bill and are worth considering for your portfolio: SEE ALSO: 2019 Midyear Investing Outlook: Where to Put Your Money Now
Shares of beaten-up industrial conglomerate General Electric (NYSE:GE) staged their long overdue turnaround in early 2019. GE stock bottomed at $6.40 in early December 2018, and through late February 2019, General Electric stock nearly doubled, climbing to $11.Source: Shutterstock But that big GE turnaround has come and gone. In March, GE stock traded near $10. In April, General Electric stock was around $9. And, in the month of May, GE ranged between $9 and $10.In other words, after staging a huge rally through the first two months of 2019, GE stock has been stuck in neutral for the past three months. GE stock has been rangebound in recent weeks because there are simply too many unanswered questions surrounding the future of GE.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA handful of those questions were answered favorably through the first two months of 2019. That's why General Electric stock rallied. But those answers have stopped coming in, and as they have, GE stock has stopped heading higher.For the foreseeable future, GE will remain plagued by a lack of clarity regarding its long-term growth prospects.There is a scenario in which GE stock could rally tremendously. But that scenario lacks clarity and tangibility at the current moment, so General Electric stock will likely remain stuck in neutral for the foreseeable future. Too Many QuestionsWhen it comes to GE, there are a thousand questions with respect to what "new GE" will look like in five years, and while management is taking the right steps to craft a better future for this company, there are simply too many questions and too little clarity today for GE stock to move much higher in the foreseeable future.There are a few things GE needs to do in order to become a better, more sustainable, more focused, less indebted, and more profitable company. Those things include shedding both unprofitable and non-core assets, using the proceeds from those asset sales to reduce its debt load, focusing on maximizing the growth of its healthy Aviation business, and investing in next-generation growth businesses like industrial Internet of Things.Management is executing on these initiatives. In late 2018 and early 2019, GE did shed both unprofitable and non-core assets and businesses. It reduced its debt load and talked about focusing on its growing businesses. Because of all those positive developments, GE stock soared from $6 to $11.But the upward momentum of General Electric stock stopped once its long-term outlook stopped becoming clearer. Specifically, GE was supposed to spin off its healthcare business, but after teasing the idea in early 2019, management has been quiet on that front for the past few months. Rumors surrounding a spin off of its Power unit haven't been confirmed or denied. Meanwhile, the company's deal to sell its Biopharma unit to Danaher (NYSE:DHR) could be in jeopardy after pharma equipment makers reported weak early 2019 numbers. GE Stock Could Pop Sometime in the FutureThere is a pathway for GE stock to head way higher.Let's look at the company's Aviation business, which is growing at a healthy rate, operates in a stable sector,, and has solid, stable profit margins. Last year, the Aviation business produced about $6.5 billion of profits before interest and taxes. Assuming $2 billion in interest expense and a 20% tax rate, that implies a standalone GE Aviation business could generate about $3.6 billion in net profits. Competitor Boeing (NYSE:BA) normally trades around 20 times analysts' average forward earnings estimate. Based on that multiple, GE's Aviation business alone could be worth more than $70 billion.GE stock has a market cap of $80 billion today.Thus, if GE successfully lowers its debt load, reduces its interest payments, and boosts the profitability of its core businesses, "new GE" could be worth substantially more than $80 billion.But, in order to believe in that scenario, you have to believe that GE can and will reduce its debt load and boost its core profitability. At this point in time, there's no reason to believe that will happen anytime soon.So while GE stock could eventually rally tremendously, it won't pop anytime soon. The Bottom Line on GE StockThe big turnaround of GE has already come and gone. Right now, lack of clarity is once again the theme dominating the outlook of the company. As long as this remains true - and it looks poised to remain the case for the foreseeable future - General Electric stock will be stuck in neutral.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Monster Growth * Ranking the Top 10 Stock Buybacks of Last Year * 5 Stocks Under $10 With Big Upside Potential Compare Brokers The post Why General Electric Stock Is Stuck in Neutral appeared first on InvestorPlace.
Danaher Corporation (NYSE:DHR), a large-cap worth US$93b, comes to mind for investors seeking a strong and reliable...
Howard Marks (Trades, Portfolio)' Oaktree Capital Management released its first-quarter portfolio earlier this month, listing eight new holdings. Warning! GuruFocus has detected 2 Warning Sign with AAPL. Based on these criteria, the firm's top five buys for the quarter were Berry Petroleum Corp. (BRY), Danaher Corp. (DHRAA.PFD), Fortive Corp. (NYSE:FTVPA.PFD), American Electric Power Co. Inc. (NYSE:AEP-PB) and Stanley Black & Decker Inc. (SWP).
Back in December, General Electric (NYSE:GE) stock looked to be in a dire situation. There was even buzz that the company could go bankrupt. But of course, the fears proved to be overblown. General Electric stock staged an impressive rally, going from $6.74 to $9.90.Source: Shutterstock It's true that GE stock is still far away from the $30 it reached back in 2016. Along the way, the company slashed its dividend to 4 cents per share and GE stock was booted from the prestigious Dow Jones Industrial Average. There was also the sudden departure of two of its CEOs. * 5 Large-Cap Stocks Getting Crushed in the Trade War But as of now, it does appear that General Electric stock has stabilized. In fact, since January the shares have been in a relatively tight range of $9.50 to $10 and change.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo far, GE's new CEO, Larry Culp, has made the right strategic moves. Then again, he has an impeccable resume as a CEO. While at the helm of Danaher (NYSE:DHR), he posted standout returns for shareholders. He showed a knack not only for striking M&A deals at the right time, but also for ensuring that the company's core businesses remained disciplined and focused.So could General Electric stock break out soon? Will Culp's magic continue? Well, unfortunately, I think the current price of GE stock is more of a resistance level.After all, GE is facing three major headwinds. Perhaps the most serious is the weakness of the company's Power business, which represents about a fifth of its total revenues. The turbine business is fiercely competitive and is facing demand pressures. Another problem is the continuing difficulties stemming from the company's ill-fated acquisition of France's Alstom SA in 2015. GE has been cutting Power's costs, but the unit will probably have to undergo more intensive restructuring going forward.JP Morgan analyst Stephen Tusa put out a stinging report on the Power unit, writing: "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."Ouch! And he also has a price target of $5 on GE stock.In the meantime, GE Capital continues to weigh on General Electric stock. Unlike other financial institutions like JP Morgan, Citigroup (NYSE:C) and Bank of America (NYSE:BAC) that made major changes after the financial crisis, this division has not been proactive. One of its big issues is its outstanding debt, which stood at $66 billion as of the end of 2018.Finally, there are some nagging wild cards facing GE stock. For example, what if the U.S. economy goes into recession? That would definitely make the turnaround of the Power business and GE Capital much more challenging.Then there is the impact from Boeing's (NYSE:BA) 737 Max grounded fleet, which uses GE's engines and leasing services. When GE released its first-quarter earnings report, the company said that the Max issue posed a "new risk" to its 2019 earnings. The Bottom Line on GE StockWhen it comes to fixing complex businesses like Power and GE Capital, the owners of GE stock will need to be very patient. That is why Culp has indicated that 2019 will be a "reset year." In other words, it's a good bet that there will not be many positive catalysts for General Electric stock this year.Besides, the valuation of GE stock is already pricey, with its forward price-earnings multiple at 24. That's not far from what Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) are trading at.In light of all this, there is really no urgency to buy GE stock for now.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post Why the Good Times May Be Over for General Electric Stock appeared first on InvestorPlace.
I don't need to tell you that General Electric (NYSE:GE) is one of the most disappointing companies in recent memory. Only a few short years ago, GE stock was trading at just under $30. Then, the troubles began, careening shares off a cliff from which it has yet to recover.Source: Shutterstock General Electric stock also hits home to me on a somewhat personal level. This is one company that I vividly remember playing both sides of the field. In September 2017, I stated unambiguously that GE shares were spiraling out of control. But starting from 2018 onward, I gambled that the selloff was over.Needless to say, I received a painful lesson in knife-catching. GE stock, despite some attractive businesses, has consistently failed both speculators and long-embattled stakeholders. As a result, it's hard to take any good news surrounding the organization seriously, even if that comes in the form of a solid earnings report.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for Over 20% Upside Potential Nevertheless, I think it's worthwhile to acknowledge the positives on General Electric stock. In the first quarter of 2019, GE reported earnings per share of 14 cents, a nickel above consensus estimates. Revenue of $27.29 billion also exceeded analysts' forecasts calling for $27.05 billion.Is this enough for GE stock for the long haul? I don't like to make big predictions based on a single financial disclosure. That said, the industrial firm levers three tailwinds that could make it a surprise hit later this year. Aviation Remains the Bright Spot for GE StockOne of the underappreciated aspects of the General Electric stock narrative is the underlying company's revenue allocation. While management was forced to make painful divestments, GE places its hopes on its core moneymakers. Fortunately, they're mostly in viable and relevant industries.Take aviation as an example. This segment represents the top revenue-generator for GE stock at $30.6 billion. During the time when management was dumping businesses to clean up GE's balance sheet, they held onto aviation. Longer term, I think this was a very wise decision.Although we have occasional grumblings such as now, the global economy is generally improving. That's especially true from a percentage-basis for developing and frontier markets. Thanks to lowered costs in technology and connectivity, more people have access to substantive and growing wealth. As a result, we'll see increased demand for travel, which naturally bodes well for General Electric stock.Also, the nature of air travel has changed. Today, we no longer enjoy the dominance of massive jumbo jets. Instead, we have smaller planes with more fuel-efficient engines. That's still a positive for GE stock because the manufacturing firm has more opportunities to serve on volume.Should additional air-travel routes open up, General Electric stands to benefit. Don't Overlook Power!At first glance, GE's Power division seems like a relic. Increasingly (and politically), the world is focusing on renewable energy sources. Of course, one of the biggest debates right now is climate change, and how we respond.President Trump's camp generally believes that climate change is a conspiracy theory. On the other hand, Democrats seems to care more about the environment than humans. One thing is clear: if we can find a practical source of renewable energy, that's far superior to burning a limited commodity.We have plenty of renewable-energy sources so that's not the problem. The issue is that they're not very practical. In prior years, these platforms were prohibitively expensive to implement and as a result, lost their utility.But recently, wind and especially solar costs have nose-dived. Does that mean renewables will upset traditional forms of energy? I don't think so.First, wind and solar require expansive space. We're lucky we live in the U.S. However, many developed countries don't have the territorial space necessary to implement them.Second, while costs have gone down, consumption has skyrocketed, and will continue to do so. Even if renewables became ultra-efficient, it's impossible for them to feed global demand. Therefore, multiple countries will still require traditional power sources, which is an underappreciated plus for GE stock. Dumping Health to Regain HealthGeneral Electric stock made headlines earlier this year when CEO Larry Culp sold off its biopharma unit to Danaher (NYSE:DHR), his former employer.The early spring cleaning wasn't surprising. Management made it clear that they wanted to streamline their financials in order to better stage a longer-term recovery. But its health component has done well for General Electric. Plus, the biopharma unit was a particularly compelling business.But looking back at things, I think management made the right move. Pharmaceuticals have come under significant pressure politically for price gouging and medicinal ineffectiveness. Thus, the broader industry faces risks from both Democrats and the cannabis-legalization movement.I mean, who doesn't want cheaper prices and natural therapies that won't lead to a nationwide addiction crisis?Importantly, GE still kept its other health-related divisions, which include medical equipment and technologies. These segments haven't attracted nearly as much negative press, and it will likely stay that way. It's also a lucky break for General Electric stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post 3 Reasons Not To Be Scared Away From The Otherwise Ugly GE Stock appeared first on InvestorPlace.
WASHINGTON , May 23, 2019 /PRNewswire/ -- Danaher Corporation (NYSE: DHR) announced that President and Chief Executive Officer, Thomas P. Joyce, Jr. , will be presenting at the Bernstein Strategic Decisions ...
General Electric (NYSE:GE) stock, once among the most boring names in the Dow Jones Industrial Average, is now facing constant danger.Source: Shutterstock It met earnings guidance for the first quarter but its asset sale to Danaher (NYSE:DHR) may be in trouble. Fears over its pension liability may be overblown but it has a grim future.CEO Larry Culp is "the man for the job" but GE Power may take three years to recover.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGeneral Electric is a great name, and Culp did a fine job at his previous post running Danaher. But this turnaround may be a bridge too far, and do you really want your money tied up in it? Forget the Name General ElectricThere is romance attached to the name General Electric, and over 130 years of history. In analyzing the company, you need to forget the history, or you'll get lost.Let's call this company Culp Industries. * 6 Stocks to Buy for This Decade's Massive Megatrend Culp Industries is a conglomerate with a market cap of $84 billion. It has $107.5 billion in "borrowings," $36.8 billion of insurance liabilities and annuity benefits (from a failed effort in long-term-care insurance), and $32.9 billion in "non-current compensation and benefits" (mainly pensions). This leaves $35.2 billion for "shareholder equity" on the books, up from $31 billion a year ago.Culp Industries consists of several businesses, some of which are doing well and some of which are doing poorly. The Aviation, Healthcare and lending businesses are doing well. The oil and gas business made a little money. The problems are in the power and renewable energy units, which make turbines and related equipment.Culp can't sell the problem children because their value is negative. Closing them would take out $7 billion in revenue and do nothing to reduce those liabilities. The Danaher deal trims the size of the healthcare unit but brings in about $21 billion. Apply that $20 billion to the balance sheet and it takes just one-fifth of the debt. Questions for GE StockIt's the power unit that's taking the whole company down. Respected JPMorgan Chase analyst Stephen Tusa says Culp "appears to be stopping short of telling the whole story" about the unit, which is losing market share. Cash flow for the unit is now seen as "significantly negative." There are more negative data points. General Electric continues to lay off workers, quietly moving jobs to India. The healthcare unit's activities in Brazil could draw fines under the Foreign Corrupt Practices Act.Culp is doing everything he can, short of changing his company's name to Culp Industries, to make investors forget about the old General Electric. He's turning over the board and has dumped plans to build a glorious new headquarters in Boston. Instead, the company will rent space.I can't imagine anyone doing a better job with the hand he has been dealt than Larry Culp. He has moved decisively to reduce cash flow drain, focused on operations that are making money, and created a new attitude for GE stock.If the oil and gas unit, Baker Hughes (NYSE:BHGE), has a winner in its "electric fracking" equipment, more good news could be on the way. BHGE stock is doing better than rivals Schlumberger (NYSE:SLB) and Halliburton (NYSE:HAL), but its value is still down by more than one-third in the last year. The Bottom LineI wouldn't buy Culp Industries here. There are green shoots, the CEO is doing what he can, but an economic downturn could sink the company's big plans at any time -- even at $10 per share.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear , available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in JPM. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post General Electric Stock Is Full of Peril appeared first on InvestorPlace.
GE (NYSE:GE) stock held steady following a question and answer session at the Electrical Products Group Conference. Though troubles remain for the Boston-based industrial conglomerate, investors and analysts have begun to believe in the turnaround plan put forth by CEO Larry Culp. GE stock still trades in a range.Source: Shutterstock Also, it did not move significantly even though Culp reaffirmed negative cash flow forecasts for 2019. Nonetheless, if his plan continues to reduce debts, spin off non-core operations, and turn profits, General Electric stock will break much higher in the coming quarters and years.Culp confirmed that the company expected negative free cash flow of $2 billion in this fiscal year. However, he also expects this outflow to end in 2020 and sees a cash flow "acceleration" in 2021. GE's latest earnings report and now this newest affirmation seemed to quiet many of the doubters who had all but left the company for dead.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend In previous articles about GE stock, I repeatedly complained about what I called a "constant drip" of new issues. The seemingly endless litany of bad news led GE's board to fire John Flannery in favor of Culp, the former CEO of Danaher (NYSE:DHR), last October. GE Really Might RecoverNow, just seven months into Culp's tenure, the litany of new troubles appears to have come to a stop. Instead, we see signs of an emerging recovery. GE beat both revenue and earnings estimates in the previous quarter.Also, investors remain concerned about GE Power, but they also saw early signs of improvement. Though sales volumes continue to fall, they have declined by lower rates. The division has also seen a turnaround in the value of its orders.Moreover, the long-term debt I mentioned more than three months ago has come down by more than $5 billion in just one quarter. It now stands at $91.57 billion, slightly higher than its market cap of just over $87.5 billion. Short-term debt rose by almost $2.9 billion in the same period. However, both long and short-term debt levels have fallen on a year-over-year basis. GE Has Far to GoTo be sure, GE is not out of the woods yet. On top of the negative free cash flow, the length of the current economic growth cycle far exceeds long-term averages. Though few predict a looming recession, the long economic expansion increases the risk of such an event. Such a downturn would at least delay a GE turnaround.Furthermore, GE Aviation, currently GE's best-performing division, faces uncertainty with its status as the sole supplier of engines for Boeing's (NYSE:BA) troubled 737 MAX.So far, the Aviation division has incurred no impairment charges related to the 737 MAX. Moreover, both orders and backlogs rose for this division on a year-over-year basis. Still, investors should watch for any Boeing-related troubles in future quarters. GE Stock Is RangeboundStill, for all of the remaining challenges, this report has further helped to quiet those who predicted the demise of GE. Moreover, General Electric stock remains in the $10 per share range, about the same levels of three months ago.Today, confidence in the company has increased, yet GE stock has traded in a range since late January. The range adds uncertainty but also gives investors more time to buy.The critical point is the equity's 2019 high of $11.30 per share. If GE can sustain itself past that point, I think the more optimistic $14 to $16 per share price target will become achievable. Concluding Thoughts on GE StockDespite concerns of range-bound trading and deeply negative cash flows in 2019, Mr. Culp's recovery plan has begun to make a recovery in GE stock appear plausible. Yes, GE continues to struggle with cash flows. However, if company forecasts hold, that should turn around by next year.Moreover, the company's divisions continue to show improved performance as revenues increase and debt levels decline. Culp also continues to sell non-core businesses. As this smaller, more-nimble GE begins to emerge, bears continue to pare back their doomsday scenarios, and a long-absent sense of confidence has started to return.GE still has a long way to go. Like any recovery, this one will also face challenges, as well as risks. However, as I stated back in February, a speculative buy case for GE has emerged.The first quarter numbers and even the continued negative cash flows reaffirm this thesis. For those who have the stomach for the risk, I think GE stock can rise much higher once it sustains itself above $11.30 per share.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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post Despite Uncertainty, the Speculative Case for GE Stock Is Still Solid appeared first on InvestorPlace.
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.