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Monday, January 16, 2023 11:30:06 AM
General Electric Stock, The Sum of All Parts Strategy is Paying Off
By: MarketBeat | January 16, 2023
• Industrial power solutions company General Electric Company (NYSE: GE) stock has climbed over 20% in 2023 as positive sentiment for its restructuring gains steam. General Electric has been divesting its businesses for the past several years. Some well-known past spin-offs include oilfield services provider Baker Hughes Company (NYSE: BKR) and lending business GE Capital.
Its GE HealthCare Technologies Inc. (NASDAQ: GEHC) spin-off was immediately added to the S&P 500 index (NYSEARCA: SPY), replacing Vornado Realty Trust (NYSE: VNO), which moved to the S&P MidCap 400 index. There appears to be more upside as a weekly cup and handle breakout formation may be set up.
Sum-of-the Parts Strategy
General Electric announced its plans to split into three standalone companies in November 2021. Since they are not necessarily complementary businesses, CEO Larry Culp believes they will each retain higher multiples as separate entities and bring more value to shareholders.
GE shareholders would get extra shares of the spin-offs based on a ratio to their ownership of GE shares. CEO Culp has a strong background in this strategy as the former CEO of industrial giant Danaher Co. (NYSE: DHR), as they bought and sold many companies during his tenure there...
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DiscoverGold
By: MarketBeat | January 16, 2023
• Industrial power solutions company General Electric Company (NYSE: GE) stock has climbed over 20% in 2023 as positive sentiment for its restructuring gains steam. General Electric has been divesting its businesses for the past several years. Some well-known past spin-offs include oilfield services provider Baker Hughes Company (NYSE: BKR) and lending business GE Capital.
Its GE HealthCare Technologies Inc. (NASDAQ: GEHC) spin-off was immediately added to the S&P 500 index (NYSEARCA: SPY), replacing Vornado Realty Trust (NYSE: VNO), which moved to the S&P MidCap 400 index. There appears to be more upside as a weekly cup and handle breakout formation may be set up.
Sum-of-the Parts Strategy
General Electric announced its plans to split into three standalone companies in November 2021. Since they are not necessarily complementary businesses, CEO Larry Culp believes they will each retain higher multiples as separate entities and bring more value to shareholders.
GE shareholders would get extra shares of the spin-offs based on a ratio to their ownership of GE shares. CEO Culp has a strong background in this strategy as the former CEO of industrial giant Danaher Co. (NYSE: DHR), as they bought and sold many companies during his tenure there...
Read Full Story »»»
DiscoverGold
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