Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, April 10, 2015

Article Excerpt

GENERAL ELECTRIC CO., $28.51, New York symbol GE, rose 11% on Friday on news that it is selling most of its GE Capital subsidiary, which mainly provides loans to GE’s clients. The company has scaled back GE Capital over the past few years, after the division suffered big losses in the 2008/09 financial crisis. Under the plan, GE will sell most of GE Capital’s office buildings and real estate loans to a group of investors for $26.5 billion. That’s equal to 10% of GE’s $259.0-billion market cap (or the value of all of its outstanding shares). The company will also hand out its remaining 85% stake in Synchrony Financial (New York symbol SYF), which provides credit card loans through retailers like Wal-Mart and J.C. Penney. In August 2014, GE sold 15% of Synchrony’s shares through an initial public offering. The company will give its shareholders the chance to swap their GE stock for Synchrony shares. GE will also hang on to the…