General Electric CompanyNYSE
Yesterday, 3:26 PM
- The combination of General Electric's (GE +0.8%) oil and gas business with Baker Hughes (BHI +0.4%) has the potential to challenge Schlumberger (SLB +0.2%), but "it's a long-term game," Bernstein analysts say.
- Following yesterday’s investor meeting, the Bernstein boys say they are more convinced by the merger's long-term potential but remain cautious on delivery timing; while the long-term potential and revenue enhancement concepts dominated the meeting, the firm says little information was revealed on timing beyond the already published synergy estimates.
- Bernstein agrees conceptually with management that GE-BHI will challenge SLB for large-scale, integrated, at-risk projects and leadership of new commercial models in E&P, but expects implementation will prove more challenging than conveyed at the investor meeting.
Yesterday, 11:47 AM
- The quarterly payout goes up 4% to $0.24 per share for an annualized yield of 3% at the current stock price of $31.65. The dividend is payable on Jan. 25 to shareholders of record on Dec. 27. The ex-dividend day is Dec. 22.
- CEO Jeff Immelt: The hike is in line with GE's plan to lift the payout ratio to 45-50% and then grow the dividend from there alongside earnings.
- Shares have moved higher since the announcement, now ahead 0.45% on the session.
Thu, Dec. 8, 2:35 PM
- Stifel analysts say they are “fundamentally cautious” on industrial stocks but call General Electric (GE -0.3%) and Ingersoll-Rand (IR +0.9%) their top picks among their Buy-rated stocks in the group in both a base case slow-and-steady low-growth environment as well as a pro-growth Trump rally.
- The firm considers GE a solid, quality defensive play with an attractive 3% yield and likely would be a prime beneficiary of a Trump bump, but also a strong defensive component in its aftermarket/services stream, which accounts for ~45% of revenues and 80% of profits.
- Stifel says the Baker Hughes should effectively de-risk GE’s oil and gas exposure and allow management to pursue large scale restructuring of a $30B business while providing additional balance sheet flexibility going forward.
Mon, Dec. 5, 6:55 PM
- Sales of power plant upgrades by General Electric (NYSE:GE) would not suffer much even if the U.S. bails out of climate change treaties under a Trump administration, Paul McElhinney, CEO of GE's power services business, tells Reuters.
- Utilities still want the economic benefits that come with modernizations, McElhinney says, predicting "very robust" demand for products that can lower emissions and increase efficiency.
- GE, which supports climate agreements, says global CO2 emissions could be cut by 10%, or 1.1M metric tons/year, if current technology to boost the efficiency of coal and gas-fired power plants were installed in every plant now operating; the company says such upgrades cost ~55M for a coal plant and $10M for a natural gas plant.
- GE expects to land contracts worth ~$500M in the coming weeks, McElhinney says.
Mon, Dec. 5, 10:27 AM
- Polish and company authorities say that Lufthansa (OTCQX:DLAKY) and General Electric (GE) will jointly invest some €250M in Poland to build an advanced plant servicing aircraft engines to be operational in 2018.
- The facility will test and repair state-of-the-art engines for Boeing 747-8 jumbo jets for Lufthansa and for other airlines. Some 600 jobs are expected to be created as a result.
Fri, Dec. 2, 2:32 PM
- JPMorgan is out with its top stock picks for 2017, but as Jack Hough of Barron's points out, the "shorts" list is far more interesting because Sell recommendations from the sell-side are so much rarer than Buys.
- Of the 14-name shorts list, nine have price targets 10% or more below the current level.
- GE has 10% potential downside thanks to its too-rich valuation relative to free cash flow versus peers.
- Federated Investors (NYSE:FII) could fall 14% thanks to its exposure to the struggling active-management industry.
- Trucker C.H. Robinson Worldwide (NASDAQ:CHRW) has 16% downside as favorable contracts reset to depressed industry levels.
- Archer Daniels Midland (NYSE:ADM) has a price target 18% below the current value as a strong dollar and trade troubles with Mexico crimp profits.
- A 45% price decline could be in store for driller Forum Energy Technologies (NYSE:FET), with good assets and a healthy balance sheet, but way too fancy of a valuation.
- There's also Intelsat (NYSE:I), which JPMorgan says could be a zero as new competition squeezes the heavily leveraged company.
- Other shorts: Cornerstone OnDemand (NASDAQ:CSOD), Ensco (NYSE:ESV).
Thu, Dec. 1, 11:46 AM
- November monthly performance was: +2.44%
- 52-week performance vs. the S&P 500 is: +6%
- $0.18 in dividends were paid in November
- Top 10 Holdings as of 10/31/2016: Exxon Mobil Corp (XOM): 5.06236%, AT&T Inc (T): 5.00966%, Verizon Communications Inc (VZ): 3.95123%, Chevron Corp (CVX): 3.90836%, General Electric Co (GE): 3.34327%, Procter & Gamble Co (PG): 3.22338%, Wal-Mart Stores Inc (WMT): 2.96781%, Philip Morris International Inc (PM): 2.82773%, Pfizer Inc (PFE): 2.73807%, Merck & Co Inc (MRK): 2.31749%
Thu, Dec. 1, 9:31 AM
- November monthly performance was: +0.62%
- 52-week performance vs. the S&P 500 is: -5%
- No dividends were paid in November
- Top 10 Holdings as of 10/31/2016: Apple Inc (AAPL): 4.78232%, Microsoft Corp (MSFT): 3.6545%, General Electric Co (GE): 2.09427%, Procter & Gamble Co (PG): 1.43859%, Exxon Mobil Corp (XOM): 1.36332%, Wells Fargo & Co (WFC): 1.34175%, Intel Corp (INTC): 1.2948%, Bank of America Corporation (BAC): 1.2811%, Pfizer Inc (PFE): 1.22767%, Alphabet Inc C (GOOG): 1.22159%
Thu, Dec. 1, 8:49 AM
- November monthly performance was: +3.54%
- 52-week performance vs. the S&P 500 is: -3%
- No dividends were paid in November
- Top 10 Holdings as of 10/31/2016: Apple Inc (AAPL): 6.80131%, Microsoft Corp (MSFT): 5.15024%, Exxon Mobil Corp (XOM): 3.74079%, General Electric Co (GE): 2.88197%, Procter & Gamble Co (PG): 2.47992%, AT&T Inc (T): 2.43052%, Wells Fargo & Co (WFC): 2.30872%, Amazon.com Inc (AMZN): 2.24391%, Facebook Inc A (FB): 2.2067%, Alphabet Inc C (GOOG): 2.16615%
Thu, Dec. 1, 4:27 AM
- A new batch of companies may soon be able to operate in Cuba if the Obama administration can persuade Havana to finalize agreements before Donald Trump takes office, WSJ reports.
- If the White House succeeds, Google (GOOG, GOOGL), General Electric (NYSE:GE), Norwegian Cruise Line (NASDAQ:NCLH), Royal Caribbean (NYSE:RCL) and Pearl Seas Cruises could all announce deals in the upcoming weeks.
Wed, Nov. 30, 10:47 AM| Wed, Nov. 30, 10:47 AM | 15 Comments
Tue, Nov. 22, 3:37 PM
- With $4.5B of short interest, Exxon Mobil (NYSE:XOM) leads the way, followed by IBM at $3.7B. Rounding out the top ten: AT&T (NYSE:T), Caterpillar (NYSE:CAT), Chevron (NYSE:CVX), Boeing (NYSE:BA), GE, Procter & Gamble (NYSE:PG), Abbot Labs (NYSE:ABT) and Disney (NYSE:DIS).
- Most interesting from that list are Cat, Boeing, and Abbot Labs as their market caps are significantly smaller than the other seven.
- Of the top 50 short positions, there are two names in which the short interest rises to as high as 10% of the market cap: Freeport-McMoRan (NYSE:FCX) and Digital Realty Trust (NYSE:DLR).
- Previously: Goldman's list of stock longs mattering most to hedge funds (Nov. 22)
Tue, Nov. 22, 11:26 AM
- Eni (E +0.4%) signs a framework agreement with General Electric (GE +0.5%) to jointly develop large-scale renewable energy projects and hybrid solutions with a focus on energy efficiency.
- Eni says the agreement covers onshore and offshore wind generation, solar power, hybrid gas-renewable projects, electrification of new and existing assets, waste-to-energy projects, the green conversion of mature or decommissioned industrial assets and the deployment of technologies developed by Eni itself.
- Eni says the GE deal will help it pursue the progressive decarbonization of its energy mix.
Mon, Nov. 21, 5:28 PM
- Boeing (NYSE:BA) says Ray Conner will step down as head of its commercial aircraft unit, to be replaced by GE Aviation Services (NYSE:GE) chief Kevin McAllister.
- The 61-year-old Conner is Boeing's vice chairman and has been president and CEO of Commercial Airplanes since 2012; he joined Boeing in 1977 as a mechanic and rose through the ranks to lead its 747 and 777 jet lines as well as leading the commercial unit sales and customer support operation.
- McAllister spent 27 years at GE Aviation, where he served since 2014 as president and CEO of GE Aviation Services; he had been VP and general manager of the unit's global sales and marketing since 2008.
Wed, Nov. 16, 5:58 PM
- GE Energy Connections, General Electric's (NYSE:GE) $11B electrification, grid and controls business, selects Steven Martin, former general manager and chief data scientist for Microsoft’s Cloud and Enterprise group, as its new chief digital officer.
- Martin is tasked with leading digital strategy across Energy Connections in partnership with GE Digital, as well as designing “new customer experiences and business models,” a GE spokesperson tells WSJ.
- Martin is one of six new executive hires; another is Patrick Franklin, who joins GE Digital as VP and general manager for applications after serving as a VP of engineering at Google.
Wed, Nov. 16, 2:34 AM
- Honeywell (NYSE:HON) has agreed to supply avionics for a proposed supersonic jetliner - intended to carry only premium passengers - that could cruise 10% faster than the now extinct Concorde.
- The demonstrator vehicle, called Baby Boom, is slated to take to the air in 2017.
- If development goes as planned, the full-size version, including engines manufactured by General Electric (NYSE:GE), could start carrying passengers as early as next decade.