Shedding GE Capital could benefit GE's valuation

General Electric Co's move on Friday to shed most of its GE Capital unit over the next few years could finally reward the patience of shareholders who have endured years of holding a market laggard. GE Capital's elephantine presence has long kept the conglomerate trapped between two worlds where its valuation was concerned: cheap for an industrial stock but rich for a bank. "Essentially, GE has been treated like a bank by investors," said Charles Sizemore, chief investment officer of Sizemore Capital Management in Dallas. "Going forward, it should trade a lot more like the industrial powerhouse it is." Refocusing the company around its industrial base could mean as much as 16 percent upside for the stock by closing the valuation gap against peers like Honeywell International Inc and United Technologies Corp, a Reuters analysis of valuation data shows.



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