Here's Why GE Still Isn't Worth the Risk for Most Investors
General Electric's (NYSE: GE) shares are up 40% over the past six months, with a 15% gain since the start of 2020. Backing up that price gain was a better-than-expected fourth-quarter earnings showing. Before you get sucked into the recovery story, though, step back and take a closer look at the bigger picture. Here are a few reasons most investors should remain on the sidelines at GE.
One of the big underpinnings of GE's stock advance was the company's decision to sell a portion of its healthcare division. That move freed up around $20 billion of cash for debt reduction. Some industry watchers believe that this move, combined with other asset sales and cash-raising efforts, has basically solved the industrial company's debt problems. This is wishful thinking.
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Source Fool.com
