Jim Cramer: General Electric breaking up into 3 companies was a necessary move

Share this & earn $10
CNBC Television
Published at : 10 Nov 2021
4261 views
42
3

"Mad Money" host Jim Cramer on Tuesday cheered General Electric’s decision to split up its aviation, health care and power businesses into three separate companies. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6

CNBC’s Jim Cramer on Tuesday cheered General Electric’s plan to break itself up into three standalone companies focused on energy, aviation and health care.

While the eventual separation of the American industrial conglomerate may be symbolically somber, the “Mad Money” host said it’s the correct and necessary financial move, and he trusts GE’s chief executive, Larry Culp, to steer it through.

Culp, who took over GE in 2018, “saved the company and, while we might miss the GE name, the divisions themselves were a house divided which, of course, could not stand,” Cramer said.

Cramer said Culp has done an excellent job streamlining GE’s business structure and cleaning up its balance sheet after it was impaired by the financial crisis. However, at this point, Cramer said it no longer made sense to keep the remaining units together.

“Let me put it like this: if you were starting a company today, you’d never create one that’s part aerospace, part health care, and part power, including renewables,” Cramer said.

GE aims to spin off its health-care arm by early 2023 and its energy unit by early 2024, according to a company press release. The current GE will be the company focused on aviation.

Once this happens, Cramer said the standalone companies will be easier for Wall Street analysts and investors alike to get behind.

“Even at their peak, this combination hasn’t been able to excite anyone for twenty years, hence why you had to do this,” the former hedge fund manager said, but he suggested it may be a different story as separate entities.

“A health-care company based on high-demand MRI machines that they can’t even get enough of? That’s a good one,” Cramer said. “The power and renewables business could be very enticing for money managers who want to go green — and there’s a lot of them out there.”

Shares of GE rose 2.65% Tuesday to close at $111.29 apiece. The stock is up nearly 29% year to date, outpacing the S&P 500′s roughly 25% gain over the same span.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC
#CNBCTV

CNBCMad Moneyinvest

Operation Varsity Blues: The College Admissions Scandal | Official Trailer | Netflix

Operation Varsity Blues: The College Admissions Scandal | Official Trailer | Netflix

Teaser: 3=6 - Permissive and Indulgent

Teaser: 3=6 - Permissive and Indulgent

Textual Content

Textual Content

Belgian GP - Race - F1 Spring 2019 - GeneRally Polska

Belgian GP - Race - F1 Spring 2019 - GeneRally Polska

Prince James & Jacq Getting It On!!! (Once Upon A Time S2E13)

Prince James & Jacq Getting It On!!! (Once Upon A Time S2E13)

Bob Proctor: "I will teach you the MOST IMPORTANT SKILL"

Bob Proctor: "I will teach you the MOST IMPORTANT SKILL"

Even Though

Even Though

Shania Twain - That Don't Impress Me Much (Official Music Video)

Shania Twain - That Don't Impress Me Much (Official Music Video)

What are food additives?

What are food additives?

Creative People Another Level

Creative People Another Level

ADAAM - EXTRA (GrindTape Track #5)

ADAAM - EXTRA (GrindTape Track #5)

When you Stuck with a Girl in Anime

When you Stuck with a Girl in Anime

12. DRINK x PG feat. Black Mamba - TOP QUALITY [Official Video] prod. by VICHEV

12. DRINK x PG feat. Black Mamba - TOP QUALITY [Official Video] prod. by VICHEV

RACE 1 OP2 NOVICE FINAL ONEPRIX 2021

RACE 1 OP2 NOVICE FINAL ONEPRIX 2021

Reconsider

Reconsider

How to Properly Take a Shower | My Shower Routine

How to Properly Take a Shower | My Shower Routine

When Time Became History - The Human Era

When Time Became History - The Human Era

Cozy Christmas Decorate with Me! Farmhouse Christmas Decor 2021

Cozy Christmas Decorate with Me! Farmhouse Christmas Decor 2021

Why do we fall in love with a particular person, and not another?

Why do we fall in love with a particular person, and not another?

Straightforward

Straightforward

We ATE The SPICIEST CHIP in the WORLD!! Carolina Reaper Challenge 🥵

We ATE The SPICIEST CHIP in the WORLD!! Carolina Reaper Challenge 🥵

TAKE INTO ACCOUNT ALL COSTS/EXPENSES IN TRADING! 💸

TAKE INTO ACCOUNT ALL COSTS/EXPENSES IN TRADING! 💸

my quick & productive morning routine for university!

my quick & productive morning routine for university!

Franz Liszt - Liebestraum - Love Dream

Franz Liszt - Liebestraum - Love Dream

DOWNTOWN - CHECK (PROD. BY CANEB) (OFFICIAL MUSIC VIDEO)

DOWNTOWN - CHECK (PROD. BY CANEB) (OFFICIAL MUSIC VIDEO)

Capital Expenditures vs Operating Expenditures

Capital Expenditures vs Operating Expenditures

Guidelines- Mac Miller

Guidelines- Mac Miller

Stoto - Still Can't Sleep (Original Mix)

Stoto - Still Can't Sleep (Original Mix)

HOW TO MAKE AN IMPACT - One of the Best Speeches EVER For Young People | Simon Sinek

HOW TO MAKE AN IMPACT - One of the Best Speeches EVER For Young People | Simon Sinek

Fresh to home ‘Better Half’ | EP1 | Mini Webseries | Fliq

Fresh to home ‘Better Half’ | EP1 | Mini Webseries | Fliq

Breaking news ||9th Class Result Leaked now|| how to check online result 9th ||9th class result

Breaking news ||9th Class Result Leaked now|| how to check online result 9th ||9th class result

Can I Help You? | Anwar Jibawi

Can I Help You? | Anwar Jibawi

Display examples - which one to use?

Display examples - which one to use?

FUN WAYS TO SNEAK ANYTHING ANYWHERE || DIY Crazy Sneaky Tricks And Tips By 123 GO Like!

FUN WAYS TO SNEAK ANYTHING ANYWHERE || DIY Crazy Sneaky Tricks And Tips By 123 GO Like!

How to Read a Syringe 3 ml, 1 ml, Insulin, & 5 ml/cc | Reading a Syringe Plunger

How to Read a Syringe 3 ml, 1 ml, Insulin, & 5 ml/cc | Reading a Syringe Plunger

Ho Gaya Hai Tujhko (New Version) Hot Video|Dilwale Dulhania Le Jayenge | Shahrukh Khan | Meerut Star

Ho Gaya Hai Tujhko (New Version) Hot Video|Dilwale Dulhania Le Jayenge | Shahrukh Khan | Meerut Star

Ed Sheeran - Photograph (Official Music Video)

Ed Sheeran - Photograph (Official Music Video)

Christmas Inside Liberty London ✨ The Tree of Liberty Festive Store Tour

Christmas Inside Liberty London ✨ The Tree of Liberty Festive Store Tour

3 HOUR STUDY WITH ME | Background noise, Rain Sounds, 10-min break, No Music

3 HOUR STUDY WITH ME | Background noise, Rain Sounds, 10-min break, No Music

3. RICTA - BALACLAVA (Official Video)

3. RICTA - BALACLAVA (Official Video)

Young Adult

Young Adult

Charlie Cunningham - An Opening

Charlie Cunningham - An Opening

MY KIND OF PERFUME COLLECTIONS #my vintage collection#kind of perfumes#cristian dior#bvlgari#lancome

MY KIND OF PERFUME COLLECTIONS #my vintage collection#kind of perfumes#cristian dior#bvlgari#lancome

Tiempos Pasados | Past Times - Capítulo 2

Tiempos Pasados | Past Times - Capítulo 2

D - Block Europe - Large Amounts [Music Video] | GRM Daily

D - Block Europe - Large Amounts [Music Video] | GRM Daily

Lil Dinky ft Itchin loc ( Passed it off )

Lil Dinky ft Itchin loc ( Passed it off )

Well Nigh

Well Nigh

Music To Suit Your Changing Mood | Big Ideas | McCombs School of Business

Music To Suit Your Changing Mood | Big Ideas | McCombs School of Business

Elevate Barn 145 Transportable House Tour

Elevate Barn 145 Transportable House Tour