General Electric shares close flat on Thursday, company to participate in two joint ventures in Bangladesh

Two key energy deals, evaluated at a total of $5.8 billion, were announced earlier this week in Bangladesh, with General Electric Company (GE) participating in both.

General Electric shares closed flat at $13.99 in New York on Thursday. The stock registered an intraday high at $14.14 and an intraday low at $13.93.

Shares of General Electric Company have retreated 19.83% so far in 2018 compared with a 4.66% gain for the underlying index, S&P 500 (SPX).

In 2017, General Electric’s stock plummeted 44.78%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

The first joint venture was formed by General Electric, Mitsubishi Corp of Japan and Summit Power International Ltd., an infrastructure developer and operator headquartered in Singapore and Dhaka, Bangladesh. The venture will establish a $3 billion, 2 400 megawatt thermal power plant as well as related oil and liquefied natural gas terminals.

The project includes four thermal units with capacity of 600 megawatts each, a liquefied natural gas terminal with capacity of 380 000 cubic meters and oil terminals with capacity of 100 000 metric tons.

Summit Power will have a 55% stake in the joint venture, Mitsubishi Corp – a 25% stake, and General Electric – a 20% stake.

According to Muhammad Aziz Khan, Summits Chairman, the project is expected to be launched in 2019 and finalized by the year 2023.

Meanwhile, the second joint venture, announced later on Wednesday, was formed by General Electric and the Bangladesh Power Development Board (BPDB). The projects objective is the production of 3 600 megawatts of electricity.

“This will cost $2.8 billion and BPDB as lead partner will invest 51 percent while GE will invest 30 percent and the remaining 19 percent stake will be invested by a strategic partner”, Saiful Hasan Chowdhury, a director of the BPDB, was quoted as saying by Reuters.

According to CNN Money, the 16 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $15.25, with a high estimate of $27.00 and a low estimate of $11.00. The median estimate represents a 9.01% upside compared to the closing price of $13.99 on July 12th.

The same media also reported that 14 out of 19 surveyed investment analysts had rated General Electric’s stock as “Hold”, while 4 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the General Electric stock are presented as follows:

R1 – $14.01
R2 – $14.03
R3 (Range Resistance – Sell) – $14.05
R4 (Long Breakout) – $14.11
R5 (Breakout Target 1) – $14.17
R6 (Breakout Target 2) – $14.20

S1 – $13.97
S2 – $13.95
S3 (Range Support – Buy) – $13.93
S4 (Short Breakout) – $13.87
S5 (Breakout Target 1) – $13.81
S6 (Breakout Target 2) – $13.78

By using the traditional method of calculation, the weekly levels of importance for General Electric Company (GE) are presented as follows:

Central Pivot Point – $13.60
R1 – $14.15
R2 – $14.46
R3 – $15.01
R4 – $15.57

S1 – $13.29
S2 – $12.74
S3 – $12.43
S4 – $12.13