GE’s recent spinoff is the better pick here

Article Excerpt

We’ve long told our readers that spinoffs are a great way for companies to unlock hidden value for their shareholders. A recent example is General Electric, which is breaking up into three smaller firms. GE is now up 35% since it announced that plan in November 2021; its new spinoff GE HealthCare has gained 20%. We like both, but prefer the new firm for your new buying. GENERAL ELECTRIC CO. $113 remains a hold. The conglomerate (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $124.3 billion; Price-to-sales ratio: 1.5; Dividend yield: 0.3%; TSINetwork Rating: Average; www.ge.com) spun off its healthcare products business as GE HealthCare Technologies (see below) in January 2023. Investors received one share of the new firm for every three GE shares they held. They are not liable for capital gains taxes until they sell their new shares. Parent GE held 19.9% of GE HealthCare at the time of the spinoff, but recent…