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General Electric (GE) shares have seen a massive rise and dump in the past days from the realities of two different events.
The shares of American Multinational Company, General Electric Company (NYSE: GE) dropped by 2.91% in pre-market trading after the company revealed that it plans on leaving its New Build Coal Power Market, a move the company said is subject to applicable consultation requirements. At the time of writing, GE stock is 9% down, trading at $6.28.
Per the official announcement, GE’s Steam Power business will work with customers on existing obligations as it pursues this exit, which may include divestitures, site closings, job impacts, and appropriate considerations for its publicly held subsidiaries.
Commenting on the proposed exit from the new-build coal power market, Russell Stokes, GE Senior Vice President and President & CEO of GE Power Portfolio said:
“With the continued transformation of GE, we are focused on power generation businesses that have attractive economics and a growth trajectory. As we pursue this exit from the new build coal power market, we will continue to support our customers, helping them to keep their existing plants running in a cost-effective and efficient way with best-in-class technology and service expertise.”
Following this exit, General Electric Company (GE) aims to focus on and invest in its core renewable energy and power generation businesses, as it promises to keep working to make its electricity provisions more affordable, reliable, accessible, and sustainable. The company also noted that the General Electric Steam Power will continue to deliver turbine islands for the nuclear market and service existing nuclear and coal power plants.
GE Shares Seeing Frequent Pumps and Dumps
General Electric (GE) shares have seen a massive rise and dump in the past days from the realities of two different events. As reported by TheStreet, last week GE shares spiked 14% over a two-day period thanks in part to a Bullish outlook on industrial group cash flow from General Electric’s Chief Executive Officer (CEO) Larry Culp.
Culp gave the company a bullish disposition at the Laguna Conference organized by Morgan Stanley (NYSE: MS) where he noted that the company would be cash flow positive before the end of the year, a noted improvement from his July update that it would likely turn positive by 2021 following the harsh impacts of the coronavirus pandemic.
“I sit here today feeling very confident about where we are and where we’re going despite all of the trials and tribulations that COVID has certainly thrown at us,” he said. “Our markets are by and large stabilizing but not in any way rapidly recovering. But we’re not going to wait on the markets. That’s why we’re taking the actions that we are,” added Culp.
Despite the COVID-19 pandemic, General Electric has made remarkable progress in some of its strategic business areas including its Healthcare Business. The increasing demand for healthcare workers and services impacted the business and consequently, the company’s shares.