Hi everyone.
I have been contemplating buying GE common stock for a while, and after further investigation I can see that the company is planning another spinoff into two new companies, GE Aerospace and GE Vernova.
As far as I can see, buying shares in GE now seems like a very poor investment as the tradeoff after the spinoff will be 1 GE Venova stock for every 4 GE common stocks:
"Holders of GE common stock will receive one share of GE Vernova
common stock for every four shares of GE common stock held as of the close of business
on the record date, March 19, 2024. Following the spin-off, GE Vernova will become an
independent, publicly traded company."
https://www.gevernova.com/sites/default/files/2024-02/spinoff_faq_feb2024.pdf
GE common stock is currently trading at around 166 USD, and based on an article on Barrons, the expected share price for GE Vernoa will be somewhere between 80-120 USD.
https://www.barrons.com/articles/stock-market-movers-3b87a8d1
Am I missing something here?
Because it seems to me like 4 shares of 166 USD each, 664 USD in total will be worth no more than the projected 80-120 USD. So even at best I would stand to lose 554 USD for every 4 share of GE I own before the spinoff.
