Boeing (BA)

They reported earnings this morning and missed by a little bit. The guidance for the next year was very disappointing. He is a little concerned that the aviation business may be in for a bumpy ride. The high US dollar is meaning that less people are flying into North America and this would eventually filter through to airline-related businesses. You can hold it for the long term.

They have a healthy backlog ($500 Billion). They have a high degree of visibility. There has been an issue of some airlines trying to talk down new orders saying there is a glut of wide bodied jets. He thinks there is a bit of gamesmanship going on. For the long term, you should own it. It is a cash flow story.

(Top Pick Dec 17/14, Up 19.51%) They are in full production in the 787 & 787 max. It is just a matter of them just producing airplanes. The visibility is tremendous. Double digits growth in earnings through 2020.

US stocks are all pretty expensive right now. This is a market leader, and airline traffic is growing. Probably not a bad bet, but he doubts it is cheap. The Dreamliner is an amazing piece of innovation in the airline industry. This is best in class and a great stock to own, but not for him.

A great company with great visibility. Have completed the production start of the process with the 787 Dream Liner, also with the 737 Max. These planes are much more fuel efficient, and from an airline standpoint that is pure profit. The company has a very strong order book with $500 billion of backlog.

He is quite constructive on this. They have about a half a billion-dollar backlog. Have gone through the process of getting the 787 Dream Liner from the planning stage into full production, and now it is a cash flow story. Visibility is quite good. They have other airplanes as well. Expects this to do very well right through to the end of this decade.

Likes the industrial space as a whole and likes the carrier space as well. This looks pretty attractive trading at an 18X forward earnings price earnings multiple with about an 11% growth rate. Not bad for an industrial name. A solid name. Industrials should do well as the US economy expands.

He finds it is a little hard to analyse because 1) the company has been buying back shares and 2) it is selling right at its FMV, so he has no upside for the company. This is the kind of company that he would personally avoid.

In industrial companies, this is one of the ones that is generally very strong, and people tend to like it. You can buy this safely at this level and have another good year or so of performance.

They came out with the 787 dream liner. They are in full production right now. The catalyst is that newer planes are much more fuel efficient. This is the profit to an airline.

This has been on his wish list, and has never reached the price that he wanted. The #1, largest player in aerospace manufacturing. 2.7% dividend yield.

This has very strong seasonality. One of its better periods is from the middle of October right through until early January. The stock is forming a nice little base pattern between now and the middle of October, which will set up for another seasonal trade. You will have an opportunity to buy the stock on any kind of weakness as it gets closer to its current support level.

The visibility on this is fantastic. They have come through their development stage with the 787, a revolutionary airplane. They have developed the 737MAX and the 770X. These are all airplanes that are designed to be more fuel efficient. Fuel efficiency is golden to airlines. They have over a $5 billion backlog, which is about 7 years of sales. This is a cash flow machine. All they are doing right now is spitting out airplanes and delivering them. Not trading at a high multiple. Dividend yield of 2.81%.

She owns Citigroup (C-N) and they trade very similarly for the most part. It has been a very tough slog in this environment. Loan growth has been really hard to come by and the interest rate environment makes it tough. They are continuing to have to spend a lot of money on regulatory costs.

(A Top Pick July 24/14. Up 20.44%.) Just reported earnings which were very favourable. They are now in production on the 787 Dreamliner. Also, have the 737 Max. Have about a $4 billion backlog, which is just on the commercial side. If you include the defence side, it is over half a $1 trillion. Has great visibility. It is very important for airlines to have a newer fleet, and this is right in the sweet spot.