John O'Connell, CFA General Electric GE-N SELL Sep 23, 2020

Tremendous run over the last couple of years, so you need to be careful. You don't necessarily need to sell, but you need to be prudent by rebalancing and getting back to a level of risk you're comfortable with. Stick with the winners, and this one is. Still positive on it, but make sure you're not over-exposed.

Aerospace, market leader, tailwinds are very strong with more travel from a growing middle class. Lots of money from maintenance contracts. Valuation OK. Strong capital allocation for growth. Don't worry about the paltry dividend. Very strong management. Top quality business.

It was a wild ride. It made sense to spin off their businesses. The valuation is reasonable. Sit tight and see how this plays out if you already own.

Even now, there are too many cockroaches in this story. Other industrials, like Honeywell, are better.

Now a pure-play aircraft engine market leader. Sees it still dominating the jet engine market. Value score of 3/10. Analysts still see ~15% upside. Technically, looks to be trying to break out above $170; if it goes higher, could see a bit of a breakout.

Looks to be hitting a ceiling. Great run, aerospace is an exceptional business. Hold in short term and take some profits soon.

Lots of moving parts. Healthcare side has lots of growth potential. Aerospace also has proven its worth. He'd leave it as it. Typically, spinoffs don't have the easiest time out of the gate, jury's out on Vernova. Hold the original, as it gives you a small slice of diversification right there.

In the space, he owns GE (it's now purely jet engines after the spinoff). Also owns ERJ, which has an opportunity to win significant market share. 

They report next week. They benefit from Boeing's woes, because 70% of revenues are engines and services.

GE Aerospace is priced for perfection. The valuation has run up to the 40s PE. To justify this high PE, earnings growth must be in 20-25%. The market has gotten too exuberant with GE. Margins are up and they beat, and yet shares are down.

In the US industrial space, he'd be more inclined to look at the smaller- and mid-caps. Those will benefit from reshoring and lower interest rates.