Stockchase Opinions

Jim Cramer - Mad Money GE HealthCare Technologies Inc GEHC-Q BUY Aug 21, 2023

This GE health spin-off's equipment will be in big demand next year when doctors conduct MRIs to measure plaque in the brain (to determine which patients get the new Alzheimer's drug). Huge demand. Why are shares down 12 points since their report. Makes no sense. He bought more shares to average down.

$68.970

Stock price when the opinion was issued

medical services
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WAIT

Spinoff from GE parent. Not buying shares at this time. Waiting to see how management performs. Strong sector (healthcare), but performance remains to be seen. 

BUY

He owns a big position. Likes this a lot and it's doing many great things. It's so cheap. Is sticking with this long-term. Likes their business which is MRIs.

WAIT

One of the GE spinoffs. Larry Culp did a fantastic job turning GE around. Priced aggressively. Attractive at 10-15% below where it is now.

BUY

He likes all three GE companies, but this is his favourite, because he likes their strategy of using AI in their MRIs.

BUY

GE did a great job managing their Aerospace division, including its debt, then spinning it off. He owns no GE division, but like the healthcare division the most. Is a little concerned with their debt, but trades at 18x with solid cash flow and has solid prospects.

HOLD

They've been hurt by China, but had a decent quarter. He bought the weakest of the three GE companies. He will ultimately make money on this.

BUY

Are his favourite healthcare-AI play.

BUY ON WEAKNESS

Trades at 21x PE. It's hated by analysts, but he likes it. Wait for another downgrade before entering.

WEAK BUY
Sell GEV to buy this?

Lots of competition. Controlled by government spending and healthcare. Not as excited about this as about GEV, but the PE is a lot lower so you could get some upside there. He'd rather hold GEV.

COMMENT

He doesn't know it that well and already has exposure to the medical devices sector. He holds Medtronic, Boston Scientific, Intuitive Surgical which are all performing well. He feels that GEHC has relatively low growth.