General Electric Company (GE:NYSE)
On Tuesday June 19th, 2018, The New York Stock Market was dealt a psychological blow after the market closed for trading when it was announced that General Electric Company, a 126 year old U.S. multinational corporation and an original member of the Dow Jones Industrial Average since 1907, will be replaced by Walgreens Boots Alliance Incorporated (formerly Walgreens).
GE has been a member of the Dow since it was formed by Charles Dow in 1896. The stock, which closed down $0.20 on the day at $12.99, Finish the after-hours trading session down 1.39% closing at $12.77.
While this may be a small move in dollar terms in the aftermarket session, it’s psychological effects for the investors and shareholders maybe large and create concerns of owning the shares going forward.
This, combined with the fact that the company stated that the dividend is in Jeopardy for the fiscal 2019 year does not bode well in the stock opens for trading on Wednesday morning.
Analysts/ Broker Comments
Rick Meckler, a partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey had this to say after the news: “There’s only a small group of investors who actually target their investing to the Dow Jones Industrial Average. All in all, I don’t think it’s meaningful to investors.”
Analysts at RBC had this to say: “Symbolically, this indignity marks GE’s fall from grace. However, given that the DJIA is a price-weighted index, GE now represents less than one-half of a percent of the overall index with its current stock price sitting below $13 (9.88 pounds).“
General Electric Company operates as a digital industrial company worldwide. It operates through Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation, Lighting, and Capital segments.
The Power segment offers technologies, solutions, and services related to energy production, including gas and steam turbines, engines, generators, and high voltage equipment; and power generation services and digital solutions.
The Renewable Energy segment provides wind turbine platforms, and hardware and software; offshore wind turbines; solutions, products, and services to hydropower industry; and blades for onshore and offshore wind turbines.
The Oil & Gas segment offers oilfield services, oilfield equipment, turbomachinery and process solutions, and digital solutions.
The Aviation segment provides jet engines and turboprops; maintenance, component repair, and overhaul services, as well as replacement parts; and additive machines, materials, and engineering services.
The Healthcare segment offers diagnostic imaging and clinical systems; products, services, and manufacturing solutions for drug discovery, the biopharmaceutical industry, and cellular and gene therapy technologies; and medical technologies, software, analytics, cloud solutions, and implementation and services.
The Transportation segment provides freight and passenger locomotives, and rail and support advisory services; parts, integrated software solutions, and data analytics; software-enabled solutions; mining equipment and services; and marine diesel and stationary power diesel engines and motors, as well as overhaul, repair and upgrade, and wreck repair services.
The Lighting segment offers light emitting diode products; and energy efficiency and productivity solutions.
The Capital segment provides industrial and energy financial services; and commercial aircraft leasing, financing, and consulting services.
General Electric Company was founded in 1892 and is headquartered in Boston, Massachusetts.-YahooFinance