General Electric: The Day After Its Historic Rally
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
General Electric Company (NYSE: GE) shares were trading lower by $0.76 (2.7 percent) at $27.76 in Monday's session. The issue is one trading day removed from one of its best days ever, when it added $2.78 on gargantuan volume of 353 million shares.
Friday's rally was sparked by the announcement of the spin-off of most of GE Capital coupled with additional 50 billion share buyback plan. The news took the issue as high at $28.68 during Friday's session before falling back to close at $28.51. That marked the first time GE closed over $28 since December 31, 2013.
In addition to profit-taking from this highly uncharacteristic move in the issue may be a Barron's article over the weekend that stated shares may be fully valued at the current level.
After a lower sharply lower open (Friday's close of $28.51 vs. Monday's open of $28), it managed a brief pop to $28.19, but retreated under the open and is trading just off its lows for the session.
General Electric shares still have a ways to go to reach Friday's low ($27), made off the open in Friday's session.
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