https://www.google.com/amp/s/www.wsj.com/amp/articles/ge-to-spin-off-health-care-business-in-latest-revamp-1530005401
11 replies (most recent on top)
I wonder why anyone would like to join this company now. Unless you are passionate about gas turbines and jet engines (no offense here). I joined GE because I thought it was the best school in business management, and I could have opportunities to move across the many businesses and maybe even abroad. Nothing of this happened. I am in HC, and I will then be “spun off”. At least I can add this to my vocabulary when I tell others what I do. “Hey you doing?” - “good, I am being spun off” - “what the hell does this mean?”
Did I get the read that the new GE Healthcare free standing unit will be based in Ireland when the smoke clears ?
Well the "newco " as they refer to it meaning what is left will be a long cycle business for sure. That means they need cash. The shareholders are not going to get crap for payouts via a dividend. Will these moves drive the price up? Keep your eye on how far GE plans to cut the dividend after GEHC is spun off. Steve Tusa seems to be happy, will he give the stock a buy rating? Who know and frankly the people that have most to lose are sitting in Boston. It all seems to be smoke and mirrors to not lose face in reducing a dividend once again. I don't know what people think of GE leadership but this could have been done months ago.
They are selling what they can sell right now to reduce debt and increase cash flow. Healthcare, Jennbacher/Waukesha, Transportation, and soon Baker/Hughes. Aviation will stay put. What it means to me from an investor viewpoint is that GE as a growth company is over.
They will get rid of Power next after GEHC and BHGE. Aviation is the golden goose. They will keep it until they find a way to ruin it like they did with Power. Then the parasites of "leadership" will scatter off to new hosts.
Power will go, once the Healthcare transaction is complete.
If you listened to the press release from harry potter right now. The dividend will be cut when GE separates GE healthcare from GE corporate. Translation, GE is cutting overall dividend again like folks have been predicting. Why because they are not generating enough cash flow to pay it's obligations. This is nothing more than smoke and mirrors move by GE corporate. Oh, there is a tax charge coming for separation for GE healthcare ...there is a surprise.
Also, they are getting rid of $18 billion on the balance sheet for items like pension etc.. This is the best option GE has.. unbelievable. I was surprised the idiots decided to keep Power.
I understand it sounds great they are no longer part of GE but many of them will get laid off/plants shut down but I guess Power has the same stuff to worry about
The spin continues from Harry Potter and the wizards that surround him. These companies may remove debt from the balance sheet but they also remove potential earnings on a go forward basis. Oil and gas just starting their business cycle uptick. As for healthcare , I have friends that sell there and margins are decent there. It appears JF is afraid to shut off the dividend. I can only imagine what analysts will say about this. Hey, GRC can get rid of all PhD’s working medical devices and associated products.
I'm in Aviation, and I'm kinda jealous of them to get out from under the morass of the GE management way...
Confirmed.
GEHC and BHGE sales should shore up cash and reduce debt. GEHC is takin $18B in debt.