General Electric has undergone considerable restructuring after significant exposure during the financial crisis of 2009, the company has made efforts to diversify away from the financial side of the business. The decision to invest heavily in the oil and gas sector has resulted in short term setback with the dramatic fall in oil prices and General Electric’s share price has followed this path. Despite being asset-rich, General Electric has been seeing diminishing returns from its GE Capital unit and is looking to offload the unit valued at $10 billion. It is expected that a deal will be announced soon.
Investors Notes:
- GE is said to be in talks with the Canada Pension Plan Investment Board, to sell its lending unit which would make this the biggest takeover since the debt crisis.
- In early trading this morning, there has been a large volume spike in traded shares, perhaps with anticipation of an announcement from the company.
- A bullish crossover on weekly MACD confirms the upward trajectory for share price.
- On RSI, the share price has been bouncing along the midline unable to breakthrough support indicating that buyers are dominating the market.
- Banc De Binary analysts predict that a deal will be reached in the near future.