Topic: How To Invest

Wall Street Stock Forecaster Hotline Friday, March 12, 2021

Article Excerpt

GENERAL ELECTRIC CO., $12.58, New York symbol GE, is still a hold. In the past few years, the company has narrowed its focus to four main businesses: aviation (jet engines and aircraft electronics); electrical power equipment (such as turbines and related equipment for gas-fired and nuclear power plants); renewable power equipment (wind farms and hydroelectric plants); and healthcare (X-ray equipment, MRI and ultrasound scanners). Part of that plan involves shrinking the size of its financing subsidiary GE Capital. It provides loans to buyers of its aviation and power equipment. This week, the company agreed to merge its aircraft leasing business—GE Capital Aviation Services—with AerCap Holdings N.V. (New York symbol AER). Under the terms of the deal, GE will receive $24 billion in cash, $6 billion in AerCap shares and $1 billion in notes. As a result, GE will hold 46% of the combined business, which will have a fleet of over 2,000 commercial aircraft. Its larger size will also make it easier to negotiate discounts…