Should General Electric Hold Onto Baker Hughes

GE is under the pressure from investors to slim down to boost cash flow and profitability. This company is considering to shed Baker Hughes (BHGE), the oil service company in which it acquired controlling stake last year. 

Would it be a mistake or not? 

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GE definitely has to do something. It's the one of the most disappointing stocks on the market.

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Ugh. This stock is awful--down over 40% this year and no reprieve in sight. 

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They're cutting 12,000 jobs in their power business, which will be good for savings, but the situation is pretty dire. They already admitted that they are not positioned well in the energy market. They've got excess inventory and are behind in the renewables game. I'd vote for ditching Baker Hughes. 

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Baker Hughes' oilfield services segment produced $3 billion in revenue in the first nine months of the year, but recorded an operating loss of $42 million, while the oilfield equipment business earned just $9 million of operating income on nearly $2 billion in revenue.

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GE could ditch BH, but GE could also ditch GE Transportation.

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Things are a little bit clearer now regarding relationship between GE and Baker Hughes. Baker's CEO announced the end of their ''factoring'' relationship with GE, what would portend the exit of GE's 62.5% ownership of  BHGE sometime in 2018.  
 

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Cramer chimed in on this one this week, with TheStreet saying that Cramer would normally "expect a bump in Baker Hughes' stock" given the nice oil prices, but it's ties now to "the bedraggled General Electric are likely stifling buyers". 

"Baker Hughes might be the first thing GE sells in order to shore up its balance sheet" and "it will most likely be the subject of a fire sale. I think it should be broken up and sold to pieces, but it doesn't matter. I say no, thank you."

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Ugh, they just bought it! Why not think ahead?

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Yeah, GE has been THE most disappointing stock of the decade. 

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