Finally — Some Good News About GE
Dear Rundown Reader,
Adios! See you later! Goodbye!
Three different ways to sum up General Electric’s historic dismissal from the Dow Jones last week.
Big news yes. But is it really the end for GE?
We think not. And in fact, once the dust settles things could start looking up for the beleaguered blue chip.
Today’s Rundown explains why, and what it means for you and your bottom line.
Your Rundown for Monday, June 25, 2018…
Could General Electric Become A Buy?
General Electric (NYSE: GE), last of the original Dow members, was unceremoniously booted from the index last week.
As a result, GE shares fell 1.23% through last Friday.
Not exactly the bottom dropping out, but at $13.05 per share pre-market this morning, there’s not much further for GE to fall.
After all, the stock’s already down over 50% year-over-year.
The pressure is on and all eyes are watching what GE does next.
And what’s GE doing since getting booted?
They’re selling, selling, selling.
CNBC reporting this morning, GE CEO John Flannery looks to off-load $20 billion in held assets.
No, this isn’t a full break-up.
GE is valued at roughly $113 billion. $20 billion is only 17% of GE’s assets.
That said, it’s clear Flannery smartly realizes it’s time to trim the fat at GE.
The Wall Street Journal reported this Sunday, GE is close to finalizing a deal worth $3 billion to sell its industrial engines unit to private equity firm Advent International.
The sale would be a nice shot in the arm for GE’s bottom line come its next earnings report.
And we believe more selling of its business components is exactly what GE needs to right things.
No company is “too big to fail.”
And drastic situations call for drastic measures.
GE cutting back on operations that don’t fulfill its core promise to customers and shareholders seems like the right direction.
It has worked for other companies like IBM. Why not for GE?
We at the Rundown think it can.
Sure, the entire world is watching GE and the pressure is on.
But after an embarrassing Dow dismissal last week, GE is finally making some smart moves.
Heck, GE may become a buy soon.
Now, turning to the markets this morning…
Market Rundown for Mon., June 25
Yield on the 10-Year Treasury sits at 2.889% this morning, down 0.011.
S&P 500 futures are down 15.75 at 2,743.
Oil’s up $0.24 to $68.82.
Gold’s up $0.30 to $1,271.
Bitcoin goes for $6,223 this morning, according to CoinDesk.
We’ll talk again on Tuesday.
For the Rundown,