The century-old but struggling multinational business conglomerate, General Electric, is all set to sell-off its gasification business to the industrial gases and chemicals seller Air Products and Chemicals Inc (APD, $157.37) for an undisclosed amount.
For GE, it comes as a part of its divestiture strategy to secure the company’s long-term future.
But for APD, this acquisition is highly beneficial as it allows the company to widen its synthesis gas (syngas) solutions product offerings. Furthermore, with the proven technological strength of GE, it enhances APD’s capabilities along with complementing its recent gasification technology acquisition. It also helps APD to build its presence in owning and operating gasification projects around the world.
According to the APD’s Chairman, Seifi Ghasemi, "the addition of GE's technology, deep customer and application knowledge, and talented and dedicated employees to Air Products' gasification portfolio is expected to enhance its ability to provide complete onsite solutions for the entire gasification facility."
Through this deal, APD gets to own GE's share of its 50/50 joint venture (JV) with China Shenhua Coal to Liquid and Chemical Company, Ltd., a subsidiary of China Energy Group, a globally renowned energy company. Further, with this acquisition, APD gets its hand on over 1,000 patents relating to GE's gasification technology, which has been deployed at over 90 sites, with over 240 gasifiers, and represents over 36,000 MWth (thermal megawatts) of syngas production.
GE saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on March 25, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 51 instances where the indicator turned negative. In of the 51 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The 10-day RSI Indicator for GE moved out of overbought territory on March 28, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GE broke above its upper Bollinger Band on March 27, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in of 313 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 337 cases where GE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. GE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.008) is normal, around the industry mean (4.903). P/E Ratio (21.996) is within average values for comparable stocks, (48.121). Projected Growth (PEG Ratio) (1.344) is also within normal values, averaging (2.217). Dividend Yield (0.002) settles around the average of (0.022) among similar stocks. P/S Ratio (2.838) is also within normal values, averaging (11.190).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of products for the generation, transmission, distribution, control and utilization of electricity; manufactures aircraft engines and medical equipment
Industry IndustrialMachinery