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General Electric (Management (3 CEOs in last year, Cut dividend twice in…

- - - - Announced sale of part of Power Division for $3.3B (ANNOUNCED).... expected to close in Q4 2018.. at 11x EBITDA.... Distributed Power (being sold) made up 15% of Power Revenues
      - Challenging operating environment due to "significant over capacity" This is why there was the $22B goodwill impairment charage in Q3
      - The power services division has $68.7B in back log as of sept 30th 2018
      - remaining power = $23B/year in revenue at 5-7% profit margins = $1.3B in EBIT = $13B** (EST)**
    - - $6.2B in EBIT in TTM..... Rolls-Royce trades at 23x TTM EBIT. United Technologies (Pratt & Whitney) trades at 14x EBIT.... Aviation = $87B to $146B... roughly $100B (Oakmark Capital say same) (EST)
      - Growing + $200B backlog
    - - 62.5% interest in BHGE... market cap = $24B = $15B to GE (MARKET VALUE)
        
        Took over Baker Hughes in July 2017....
        
        Selling stake now.. recent announcement to raise $4B.. sold aggregate of $2.5B on November 16th and 19th.
        
        not accounted for as "for sale"
    - - In april 2018 announced sale of part of healthcare division for a pre-tax gain of $0.7B
      - Intend to spin-off the remainder of the Healthcare segment in the next 12-18 months
        
        Not accounted for as "for sale" yet
        
        $3.5B in operating profit in 2017... growing 8% in 2018... 10x EBIT = $40B (EST)
    - - Merged with Wabtec (US rail equip manufacturer).... Generate $2.9B in cash at closing and 50% of the shares of Wabtec/GE Transport............. Expected to close in Early 2019.... Today Wabtec is worth $8.95B.... Transaction is $10B = $18.95B 50% = $8.5B to GE + $2.9B = *$11.4B (ANNOUNCED)... trailing 9 months EBIT from transport has been $448M = 20x EBIT purchase