General Electric shares rebound on Thursday, conglomerate has “line of sight” on asset sales for $4 billion, CFO says

At an investor conference hosted by Citigroup in Miami earlier this week, General Electrics Chief Financial Officer Jamie Miller said that the conglomerate had “line of sight” on the first asset sales worth $4 billion that were part of a total of $20 billion in disposals.

General Electric shares closed higher for the third time in the past eight trading sessions on Thursday. The stock went up 0.90% ($0.13) to $14.62, after touching an intraday high at $15.07, or a price level not seen since February 16th ($15.23).

In the week ended on February 18th the shares of the industrial conglomerate added 0.74% to their market value compared to a week ago, which marked the first gain out of five weeks.

The stock has pared its loss to 9.59% so far during the current month, following a 7.34% slump in January. The latter has been an eleventh consecutive month of losses.

For the entire past year, General Electric shares plunged 44.78% following a 1.44% increase in 2016.

The industrial giant has already revealed plans involving the sale of its transportation division, its lighting unit as well as its connections business.

According to Miller, the disposals might not influence cash flow during the current year, but would reduce it by less than $500 million in 2019.

General Electrics CFO also said that the company did not intend to quickly sell a 62.5% stake in Baker Hughes oilfield services business before a two-year lockup period expires.

In January, John Flannery, General Electrics Chief Executive, raised speculation that the company might break up, as he said “all options” were being taken into consideration. GEs Miller explained that the CEO, in fact, hinted at capital allocation.

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $17.00, with a high estimate of $28.00 and a low estimate of $15.00. The median estimate is a 16.28% surge compared to the closing price of $14.62 on February 22nd.

The same media also reported that 11 out of 20 surveyed investment analysts had rated General Electric’s stock as “Hold”, while 6 – as “Buy”. On the other hand, 3 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the General Electric stock are presented as follows:

R1 – $14.67
R2 – $14.73
R3 (Range Resistance – Sell) – $14.78
R4 (Long Breakout) – $14.94
R5 (Breakout Target 1) – $15.13
R6 (Breakout Target 2) – $15.21

S1 – $14.57
S2 – $14.51
S3 (Range Support – Buy) – $14.46
S4 (Short Breakout) – $14.30
S5 (Breakout Target 1) – $14.11
S6 (Breakout Target 2) – $14.03

By using the traditional method of calculation, the weekly levels of importance for General Electric Company (GE) are presented as follows:

Central Pivot Point – $14.94
R1 – $15.34
R2 – $15.64
R3 – $16.04
R4 – $16.45

S1 – $14.64
S2 – $14.24
S3 – $13.94
S4 – $13.65