Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, June 29, 2018

Article Excerpt

GENERAL ELECTRIC CO., $13.61, New York symbol GE, announced its new strategic plan this week. Under the plan, GE will focus on three main businesses: electrical power equipment (such as turbines and related equipment for gas-fired and nuclear power plants); renewable power equipment for wind farms and hydroelectric plants; and aviation products (jet engines and aircraft electronics). As a result, GE will spin off its healthcare operations as a separate firm. That business makes a variety of electrical equipment for hospitals and medical clinics, including magnetic resonance imaging machines. This division accounted for 15% of GE’s 2017 revenue of $125.3 billion. GE will initially sell 20% of the healthcare business, probably through an initial public offering. It will then hand out the remaining 80% to its shareholders as a tax-deferred dividend. The company expects to complete those transactions over the next 12 to 18 months. In addition, GE plans to sell its 62.5% stake in subsidiary Baker Hughes, a GE Co. (New York symbol…