General Electric shares gain the most in a month on Friday, a divestiture of GE’s electrical engineering unit reportedly being explored

March 12, 2018 8:18 am

According to sources with knowledge of the situation, a sale of General Electric Company’s (GE) electrical engineering business is being explored by the conglomerate, as divestitures of unwanted assets continue.

General Electric shares closed higher for a second consecutive trading session on Friday. It has also been the sharpest daily surge since February 9th. The stock went up 2.89% ($0.42) to $14.94, after touching an intraday high at $14.95, or a price level not seen since February 27th ($15.18).

In the week ended on March 11th the shares of the industrial conglomerate added 5.81% to their market value compared to a week ago, which marked the second gain out of eight weeks. It has also been the best performance since the week ended on January 7th.

The stock has extended its advance to 5.88% so far during the current month, following a 12.74% slump in February. The latter has been a 12th consecutive month of losses.

For the entire past year, General Electric shares plunged 44.78% following a 1.44% increase in 2016.

In 2011, General Electric bought electrical engineering company Converteam from a private equity consortium including Barclays Private Equity and LBO France for as much as $3.2 billion. Back then, energy was GE’s business generating the largest income, as it accounted for almost 25% of the conglomerate’s total revenue.

However, later the unit was faced with shrinking demand for its products. Last year, its net income reportedly dropped more than 40%.

According to the sources, GE Power Conversion is expected to generate a lesser amount compared to that the industrial company paid for it seven years ago.

The persons familiar with the matter also said that GE was exploring ways to shed the unit before a sale process was launched.

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $17.00, with a high estimate of $28.00 and a low estimate of $15.00. The median estimate is a 13.79% surge compared to the closing price of $14.94 on March 9th.

The same media also reported that 11 out of 20 surveyed investment analysts had rated General Electric’s stock as “Hold”, while 6 – as “Buy”. On the other hand, 3 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the General Electric stock are presented as follows:

R1 – $14.98
R2 – $15.02
R3 (Range Resistance – Sell) – $15.05
R4 (Long Breakout) – $15.17
R5 (Breakout Target 1) – $15.30
R6 (Breakout Target 2) – $15.36

S1 – $14.90
S2 – $14.86
S3 (Range Support – Buy) – $14.83
S4 (Short Breakout) – $14.71
S5 (Breakout Target 1) – $14.58
S6 (Breakout Target 2) – $14.52

By using the traditional method of calculation, the weekly levels of importance for General Electric Company (GE) are presented as follows:

Central Pivot Point – $14.67
R1 – $15.22
R2 – $15.50
R3 – $16.05
R4 – $16.60

S1 – $14.39
S2 – $13.84
S3 – $13.56
S4 – $13.28

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