IPO of 2014 that is a Buy (SYF)

General Electric (GE) - Large Pic

A Spinoff from GE is an instant Buy.

GE is breaking up GE Financial, thus today's IPO that went unnoticed Synchrony (NYSE:SYF).

General Electric (GE) is also worth a look.  Any time a solid company does a spinoff the usual result is positive for both companies.  Most investors know this is a classic play and most times the best way to unlock shareholder value is to create new companies. Last year the opportunity was AbbVie (ABBV) and Abbott Lab (ABT) which over the last 12 months have gained 17% and 15% respectivley.

The spinoff is part of GE's plan to shrink its financial unit GE Capital. GE has been focusing more on industrial products like jet engines, medical equipment and oil and gas drilling equipment.

The IPO "furthers our goal to position GE Capital as a smaller, safer specialty finance leader," said CEO Jeff Immelt.

Synchrony provides store credit cards for retailers, such as Wal-Mart, J.C. Penney and Amazon.com. It also operates an online bank, which it is expanding to increase deposits and use the money to fund its credit business.

Shares of Synchrony, which are trading on the NYSE under the symbol "SYF," were unchanged at $23 in afternoon trading after rising to $24 earlier.

Bottom line: Add both SYF and GE to your watch list.  

 

 
Chart forSYNCHRONY FINANCIAL (SYF)



Splits: none

SYNCHRONY FINANCIAL (SYF)

-NYSE

Prev Close: 23.00
Open: 23.00
Bid: 22.85 x 500
Ask: 22.87 x 900
1y Target Est: N/A
Beta: N/A
Next Earnings Date: N/A
Day's Range: 22.60 - 24.00
52wk Range: 22.60 - 24.00
Volume: 56,480,753
Avg Vol (3m): N/A
Market Cap: N/A
P/E (ttm): N/A
EPS (ttm): N/A
Div & Yield: N/A (N/A)
 
 

 


General Electric Spin-Off: 3 Reasons to Consider Buying

We're just days away from General Electric (NYSE: GE) officially spinning off the consumer-focused portion of GE Capital, Synchrony Financial, and there are three reasons why I am considering buying shares.

1. Powerful industry dynamics
One of the most fascinating things about Synchrony Financial is the industry position it finds itself in. Like Discover (NYSE: DFS) -- which is a company I think very highly of -- it offers banking and financial products to customers without the need for branches -- known as direct banking.

 

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