Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, May 25, 2018

Article Excerpt

GENERAL ELECTRIC CO., $14.63, New York symbol GE, fell 5% this week after the company warned investors its power business, which mostly makes equipment for gas-fired electrical power plants, will probably see little revenue and earnings growth until 2020. That’s because power producers are building more solar and wind-power projects instead of plants that burn fossil fuels. In the latest quarter, the power division supplied 24% of GE’s revenue, and 10% of its earnings. The weak outlook raised concerns that GE may have to lower its dividend again. In November 2017, it cut the quarterly dividend rate by 50%, to $0.12 a share from $0.24. The new annual rate of $0.48 yields 3.4%. However, any further cuts will depend on GE’s future cash flow as it plans to sell $20 billion of its less-important assets over the next two years. As part of that plan, GE has agreed to merge its locomotive business with Wabtec Corporation (New York symbol WAB). First, it will…

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