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Double-dip: GE buys Cameron unit, Citi removes from Focus List

  • Investors didn't seem too thrilled with GE's $550M purchase yesterday of Cameron's (CAM) reciprocating compression division, sending GE shares more than 1% lower today.
  • For CAM, Sterne Agee views the asset sale (and likely additional sales) as positive but believes execution of its core businesses will be the key to success in 2014; while asset sales could prompt some modest downside to its 2014-15 EPS estimates of $3.90 and $5.00, the firm sees CAM's aggressive approach to buying back stock in Q4 indicating confidence in its operations and execution.
  • Citigroup removes GE from its Focus List, not because of the purchase but due to its earnings: GE unexpectedly fell 10 bps short of its 2013 target of 70 bps of operating margin growth, normally not a big deal "but since GE does not provide EPS guidance, this target had become a disproportionally key 2013 milestone in GE’s road to a transformational mix of 70/30 industrial/capital."
Comments (6)
  • geschoch
    , contributor
    Comments (5) | Send Message
     
    GE is one of the great industrial companies in the world. These so called analysts are just plain crazy.
    21 Jan, 07:56 PM Reply Like
  • rcpatrick5443
    , contributor
    Comments (667) | Send Message
     
    It must have been a slow news day for Sterne Agee to produce such conceptual and linguistic drivel.
    21 Jan, 09:24 PM Reply Like
  • JojoPa
    , contributor
    Comments (11) | Send Message
     
    Yeah, must have been slow, the miss was 4 basis points... not 10.
    21 Jan, 10:15 PM Reply Like
  • manfredthree
    , contributor
    Comments (1327) | Send Message
     
    Seems like worse news for Sterne Agee than for GE ! Hello !
    21 Jan, 10:36 PM Reply Like
  • Bmgue12
    , contributor
    Comments (93) | Send Message
     
    I was starting to feel good about GE. I own shares since it was over $100, lost a lot and Ismael has not doing much for GE. I am disappointed. I do hope I am wrong.
    22 Jan, 08:03 AM Reply Like
  • rubel
    , contributor
    Comments (468) | Send Message
     
    ge will not get back on track until immelt is sacked along with the board!
    22 Jan, 12:14 PM Reply Like
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