What's left of GE after the fallout could be $ 2 per share

Inch took a closer look at what remains of GE, once she left GE Healthcare, sold her shipping business and separated from Baker Hughes. The company is trying to offset heavy losses in the now energy-intensive sector, while focusing on the aviation and renewable energy sectors. Still, Inch said GE "could still be in a precarious position," because the company's "off-balance sheet off-balance sheet commitments" are "coupled with the remaining low to negative cash flows that result."

GE has recorded up to $ 80 billion in "total business disinvestment revenue (before taxes)," Inch said. This is juxtaposed with GE's remaining liability, which, according to Inch, is between $ 144 billion and $ 203 billion.

According to Inch, he stated that GE's balance had a net worth between $ 2.47 per share (a notional level less than zero) and $ 7.11 per share, with approximately $ 2 per share mid-term. Here's how Inch breaks it down:

"After adding these off-balance sheet liabilities to GE Industrial's and GE Capital's accounting liabilities, we obtain a (market) value for GE Industrial's liabilities of $ 82 to $ 98 billion and a (market) value. $ 142 for GE Capital's liabilities From $ 176 billion to $ 176 billion … We look at the market value of the remaining badets of industrial companies (aviation, energy, renewable energy) and capital companies … [which] is between $ 71 and $ 78 billion (excluding badumed divestments – see figure 4). On the equity side, we value badets between $ 111 and $ 129 billion.

By subtracting the proceeds from the sale of the company's total liabilities badets from $ 225 to $ 274 billion, we get a total liability of the company (after the sale) of $ 144 to $ 203 billion. After incorporating the market value of industrial badets ($ 71 to $ 78 billion) and fixed badets ($ 111 to $ 129 billion), we charge a value for GE's shares between -2.47 and +7, $ 11, just over $ 2 per share on the closing date. midpoint. "

GE shares rose 1.9% to $ 8.66 per share at close on Tuesday. Gordon Haskett has a lower rating than GE and a $ 7 price target.

The company is expected to release its fourth quarter results on January 31.