Paul MacDonald GE HealthCare Technologies Inc GEHC-Q COMMENT Jan 27, 2025

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. 

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.

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.

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

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.

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.

Are his favourite healthcare-AI play.

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

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.