Thu, Jul. 7, 3:18 PM
- The unnamed "smartest man" is one who analyst Scott Davis believes is "the most thoughtful industrial investor."
- Citing high and rising dividend yields, good cash flow, solid balance sheets, ability to hold/expand margins with cost cuts, this investor thinks industrials (NYSEARCA:XLI) like GE and Honeywell (NYSE:HON) could be part of a modern day "nifty fifty."
- This attitude is particularly noteworthy given Davis' last report from the "smartest man" had him selling GE to buy high-beta names.
Thu, Jul. 7, 7:56 AM
- National Oilwell Varco (NYSE:NOV) and GE Oil & Gas (NYSE:GE) announce plans to cooperate on providing integrated solutions for floating production storage and offloading vessels in an effort to drive down the cost of deepwater oilfield projects.
- NOV and GE say their combined efforts will provide industry-leading topside systems with repeatable deliveries, scale economies and standardized interfaces, which should reduce risk of construction delays and cost overruns for deepwater oil and gas customers.
- The companies expect to complete joint engineering efforts and begin offering topside package solutions to oil and gas industry by early 2017.
Fri, Jul. 1, 8:47 AM
- This week's decision by the Financial Stability Oversight Council to de-designate GE Capital as a SIFI could accelerate further erosion of General Electric's credit profile.
- "The decreased regulatory oversight now allows the company to reduce capital ratios at its finance subsidiary so that more cash can be returned to the parent, which GE plans to do," said Russell Solomon, SVP and lead analyst at Moody's.
- Separately, the company has announced the completion of GE Asset Management's sale to State Street (NYSE:STT).
Fri, Jul. 1, 7:01 AM
- June monthly performance was: -0.91%
- 52-week performance vs. the S&P 500 is: -4%
- $0.04 in dividends were paid in June
- Top 10 Holdings as of 3/31/2016: JPMorgan Chase & Co (JPM): 2.91993%, US Treasury Note 1.125%, Citigroup Inc (C): 2.71706%, US Treasury Note 0.5%, General Electric Co (GE): 2.15542%, Bank of America Corporation (BAC): 1.79099%, Morgan Stanley (MS): 1.36115%, Target Corp (TGT): 1.36065%, US Treasury Note 1.625%, Carnival Corp (CCL): 1.28533%
Wed, Jun. 29, 11:52 AM
- While the removal of GE Capital's SIFi designation came earlier than expected, analyst Stephen Tusa says GE's (GE +1.8%) earnings and free cash flow outlook remain unchanged, and the stock is still expensive at current levels.
- He reiterates his Underweight rating.
- Taking a victory lap on CNBC, GE Capital CEO Keith Sherin says the eased regulatory burden will save hundreds of millions of dollars and allow for quicker capital returns.
- Previously: GE Capital SIFI designation rescinded (June 29)
Wed, Jun. 29, 9:15 AM
- General Electric (NYSE:GE) is no longer a bank masquerading as an industrial company, according to U.S. Financial Stability Oversight Council, which has pulled GE Capital's systemically important status.
- GE announced yesterday it had reached its goal of selling off 90% of what was once a massive lending operation.
- GE +2.2% premarket
Tue, Jun. 28, 8:19 AM
- Yesterday's sale of GE Capital's restaurant finance business brings the company to 90% of Jeff Immelt's goal of paring GE's once-sprawling lending business.
- The transaction pushes total agreements for sales of GE Capital's assets to $180B and will refocus the company firm on industrial businesses and the burgeoning digital manufacturing market.
Mon, Jun. 27, 6:18 PM
- General Electric (NYSE:GE) agrees to sell most of GE Capital's U.S. restaurant franchise loan portfolio to three regional banks in separate deals, as the company continues to wind down its financing arm to focus on its industrial businesses.
- GE says the deals represent ending net investment of ~$1.4B as of Q1 and are expected to release ~$200M of capital for the company.
- GE says it will retain the financing verticals related to its industrial businesses and sell the restaurant franchise financing assets to First Horizon National (NYSE:FHN), Wintrust Financial (NASDAQ:WTFC) and Sterling Bancorp (NYSE:STL).
- FHN will acquire ~$637M in GE restaurant franchise loans in the southeast and southwest U.S., WTFC will acquire $581M in loans from borrowers in the midwest and western U.S., and STL will get a portfolio with $190M in loans to borrowers mainly in its core northeastern markets.
Thu, Jun. 23, 6:24 PM
- GE plans to invest more than $1B into its fast-growing software business this year, which it says will help drive rapid growth for its GE Digital business en route to $15B in revenues by 2020, 2.5x the ~$6B it is expected to bring in this year.
- At today's GE Digital investor meeting, CFO Jeff Bornstein and other execs offered the first detailed breakdown of the software operations that GE increasingly sees as an essential complement to its manufacturing business; by using software and sensors, GE seeks to boost the efficiency and reliability of equipment such as gas turbines and jet engines.
- GE also sees strong potential from its Predix operating system, which can be used to build applications and enhance products made by GE as well as by other companies; Bornstein says sales from Predix will reach ~$4B in 2020 from “virtually zero’’ today.
- GE's digital operations may grow to represent as much as 25% of company earnings in the coming years, William Blair analyst Nicholas Heymann says: "This is a business, it’s not just a productivity improvement tool. It actually creates tangible sales and very high-margin earnings even though most people don’t have the concept that this is anything more than cotton candy."
Thu, Jun. 23, 5:00 AM
- General Electric (NYSE:GE) has received a binding offer from Cerberus Capital Management for its French consumer-credit unit, GE Money Bank, the latest step in the industrial group's exit from the finance sector.
- The sale would represent ending net investment equivalent to around $4.6B at March 31, but the operation would exclude the unit's $2B mortgage-loan portfolio, which will be sold separately.
Thu, Jun. 23, 4:14 AM
- General Electric (NYSE:GE) executives will present Wall Street analysts a progress report this morning on its new stand-alone software business, GE Digital.
- Its new products including Predix, an operating system for the industrial internet, are vital to GE's plan to become a "digital-industrial company."
- The unit is expected to record $6B in revenue this year, compared with GE's total revenue of $117B in 2015.
Tue, Jun. 21, 8:04 AM
- According to Hyundai Motor (OTC:HYMLF), General Electric (NYSE:GE) is looking to sell its 20% in their joint venture Hyundai Capital to a third party.
- In December, Hyundai and affiliate Kia Motors (OTC:KIMTF) agreed to buy a 23.3% holding in Hyundai Capital from GE for 703B won ($610M), saying it could buy the company's remaining 20% stake in the future.
Mon, Jun. 20, 11:48 AM
- Siemens’ (OTCPK:SIEGY +2.7%) $11B wind power turbine merger with Gamesa (OTCPK:GCTAY -1.7%) creates a market giant to rival Vestas Wind Systems (OTCPK:VWDRY) and GE but faces a challenge in harnessing planned savings, according to analysts at Barclays and Morgan Stanley.
- Barclays expects only a fraction of the planned 70M revenue synergies will be achieved, and does not believe the onshore and offshore businesses offer "any sort of synergy potential" in sales, as the two businesses deal with different customers, technology and drivers.
- Siemens and Gamesa have identified €230M in cost cuts within four years, and while the product synergies “are clear,” achieving that target remains a risk, Morgan Stanley analyst Ben Uglow says.
- Nevertheless, Stanley rates Siemens a Buy as "in terms of product overlap, Siemens brings a number one position in offshore turbines [and a] strong offering in developed markets.”
Fri, Jun. 17, 8:04 AM
- GE Aviation (NYSE:GE) just broke ground on two adjacent factories to mass-produce silicon carbide materials used to manufacture ceramic matrix composite components for jet engines and land-based gas turbines for electric power.
- This will create "a fully integrated supply chain for producing CMC components in large volume, which is unique to the U.S," GE Aviation's Sanjay Correa said.
- The company is investing more than $200M to construct the two facilities on 100 acres in Huntsville, Alabama.
Thu, Jun. 16, 7:25 AM
- General Electric (NYSE:GE) is in talks with the French state and several companies about acquiring Areva-Gamesa's (OTCPK:GCTAY) offshore wind joint venture Adwen, CEO Jeff Immelt told French daily Le Figaro.
- GE has contracts to build 1,500 MW of offshore wind on the French coast for utility EDF following its purchase of energy assets from Alstom last year. These are due to be built by 2019.
- Previously: Areva in talks about Adwen offshore venture (May. 19 2016)
- Previously: GE wants to become big player in offshore wind (May. 03 2016)
Tue, Jun. 14, 8:06 AM
- General Electric (NYSE:GE) is expanding its digital presence in Europe with the launch of new products, partnerships and initiatives.
- The company will open a new digital office in Paris, which will serve as the hub of this ecosystem, and add 250 new jobs.
- GE is on track to deliver $7B in digital orders for 2016.
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