Aktien in diesem Artikel
indizes in diesem Artikel
(GE) now sees its power business losing cash "significantly" this year, a stronger warning after previously stating that the unit's cash flow would be negative. GE also warned it will take up to three years for the troubled but core GE Power unit to get past lingering issues. GE stock was trying to hold above a long-term average.X"Power was a very significant negative cash flow generator last year. We expect it to be also significantly negative this year," CFO Jamie Miller said Wednesday at a Goldman Sachs investor conference.She added GE Power will take two to three years to "work through" pension costs, unprofitable contracts and liabilities from the 2015 acquisition of France's Alstom.Back in April, GE had already said that the power unit's free cash flow will be "down" in fiscal 2019, be significantly better but still negative in 2020 as headwinds abate, and turn positive in 2021.But Miller's remarks may have added to worries after top industrials analyst Stephen Tusa of JPMorgan cautioned earlier Wednesday that GE's power business is weaker than the industrial giant is letting on."We believe a full accounting of the situation with a closer look at the data, even a rudimentary review, supports our view that GE is indeed losing market share" to Siemens (SIEGY) and Japan's Mitsubishi in a stable gas turbine market," Tusa wrote in a note to clients.GE Stock Holds SupportAfter Miller's comments, GE stock fell to 10.11 after previously rising to 10.32 in stock market trading. Shares closed down 0.6% to 10.26, but holding above the 200-day moving average. GE stock has recently been finding some support at that level after spending more than a year below that long-term line.GE stock has an 11.85 buy point within a bottoming base. At first glance, GE appears to have a handle. But the midpoint of that handle is just below the midpoint of the consolidation, so it does not offer a valid lower entry.GE rivals United Technologies (UTX) and 3M (MMM), which belong to the Dow Jones
Industrial Average, were flat and fell 0.6%, respectively. Honeywell (HON) added 0.7%. Siemens stock advanced 0.8%.GE and Honeywell are former Dow Jones stocks.Please follow Aparna Narayanan on Twitter at @IBD_ANarayanan for stock market news and more.YOU ALSO MIGHT LIKE:Is GE Stock A Buy Right Now? Here's What Earnings, Chart SayChina Trade War: Why Xi Wants A Big Stock Market Sell-OffHow To Spot The Next Major Stock Market Top Catch The Next Big Winning Stock With MarketSmithBest Growth Stocks To Buy And Watch: See Updates To IBD Stock ListsThe post General
Electric Warns On Power Business Again; GE Stock Fights For Support appeared first on Investor's Business Daily. Weiter zum vollständigen Artikel bei "Investors Business Daily"
Quelle: Investors Business Daily