IPO of 2014 that is a Buy (SYF)
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.
SYNCHRONY FINANCIAL (SYF)
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Bernie Sanders: The World Is Rejecting Globalization | ZeroHedge
- Odey Makes 21% In Past 2 Days, Nearly Wiping Out Abysmal Start To The Year | ZeroHedge
- Nigel Farage Batters Obama: "He Came To Britain And Behaved Disgracefully" | ZeroHedge
- Juncker Refuses To Speak English In Address To EU Parliament | ZeroHedge
- Islamic State Blamed For Istanbul Terror Attack That Killed 41 | ZeroHedge
- Oil Jumps Above $49 As Crude Production Tumbles, Inventories Drop | ZeroHedge
- Philly Fed State Coincident Index Declines to Multi-Year Lows | Financial Sense
The most relevant financial news and articles from the Internets
- The 7 best features coming in the big free Windows 10 update on... | Business Insider
- Everybody needs to stop worrying about the end of the world | Business Insider
- Alert: Fintech revolution hits roadblocks | Business Insider
- The NHL world is baffled by a lopsided trade involving a former No. 1... | Business Insider
- REMITTANCES EXPLAINED: How funds are transferred across borders, and why digital is poised... | Business Insider
- Emergency call logs reveal horrifying... | Business Insider
- Andrew Luck signs monster contract extension that makes him the... | Business Insider