NEW YORK (Reuters) – Portfolio manager Michael Kon began buying General Electric Co shares about a year ago and got more last fall after GE Chief Executive Larry Culp outlined plans to reboot the ailing power-plant unit.
“I wouldn’t say that they’ve got their arms around it,” Kon, who is also research director at investment firm value-oriented Golub Group LLC, said of the power trouble.
“But at least they’ve identified all the issues.”
Culp has a chance to attract more investors by providing greater clarity on GE’s strategy when he and other GE leaders lay out their 2019 financial forecast on Thursday.
Wall - Street - Analysts - GE - Cents
Wall Street analysts expect GE to earn 70 cents a share this year and generate $1.9 billion in free cash flow, on average, according to data from Refinitiv.
GE optimists, spurred by Culp’s actions, have fueled a 53 percent rally from the stock’s low in December. As the first outsider to head the 127-year-old conglomerate, Culp has cracked open GE’s books to more scrutiny, shaken up its board and stationed new leaders in trouble spots like power and insurance.
Culp - Skeptics - Stock - GE - Losses
But Culp still faces many skeptics who dumped the stock as GE racked up staggering losses of more than $30 billion over the last two years and cut its dividend to near zero.
The camps are unusually divided: Of 19 analysts who cover the company, nine rate its stock “hold” or “strong sell” while 10 rate it “buy” or “strong buy,” according to Refinitiv.
Views - GE
Those views did not change much even after GE...
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