GE Aerospace (GE)

(A Top Pick July 25/17 Down 46%). He has been killed owing this in his portfolio, he says. The CEO has been removed and the new one is being cautious to take time to study the long term strategy. The market has been impatient and has sold the stock down. GE has been removed from the Dow Jones 30.

It got booted off the Dow today, but GE didn't have much impact on the Dow. GE also announced it would spin-off healthcare and divest 30% in Baker Hughes. They're on the right path and their CEO is doing a good job, but GE is uncertain--how long will this restructuring take? If this spin-off comes and you hold GE (as a Canadian), there could be tax consequences. If you own it, hold it.

It bounced a little today with its plan to spin off health care and oil. His model price for GE is $12.81 and the stock closed yesterday at $12.75. He expects the S&P to issue a negative review on GE’s debt as GE’s balance sheet changes. He would not buy here. He wants the balance sheet to shrink much more before considering it.

He usually does not buy stocks over $10 but he did this one. They have a lot of problems. There is a question about dividend sustainability. They just got kicked out of the DOW. Two other companies went up greatly after being kicked out of the DOW and taking a dip. He is being conservative on this one because there is a lot of risk. Don't buy more. They have a big pension liability to deal with as well.

Maybe this is finally the bottom. They’ve been watching it, because they’re value investors. Haven’t taken a position yet because lots of debt on balance sheet, lowered earnings guidance, trying to decide which assets to sell. Getting booted out of the Dow could cause selling pressure.

He sold out when it broke key support in mid-2017. Now the stock is still in a down trend making lower highs and lower lows.

He's watching this. It's broken a downtrend line, but is it now a buy? No, there are too many shareholders now at the current base (it's too low). At a recent call, the CEO issued negative guidance, pushing out there guidance even further
into the future. For him to buy, he needs to see a bigger base as the stock rises.

This company has had its licks. Its healthcare division is its crown jewel. Its power and energy divisions are leaders in their industries but they are weak industries. He thinks it might be time to try to catch the falling knife but he recommends buying in stages, buying some now and perhaps again in 6 months.. A complete recovery might take a long time.

He doesn’t know. Still going through very early stages of a restructuring. A lot of bad behavior going on that has come to light only in the last year. The cockroach theory says that you have to avoid making bets on this type of situations. He would just avoid it.

One of the most disappointing stock in the U,S market. Has gone from a market leader to a marker lagger to say the least. New CEO is reevaluating every businesses and selling of or joint venturing. That’s going to take some time. He caught the dividend which people didn’t like. Stocks seems to have reached a bottom now. He thinks its a safe stock to buy for longer term value investors.

He invests in good companies that are getting better, with a catalyst that accelerates the stock. GE is not. He isn't good at picking bottoms. There's too much risk with GE, and a mountain of shareholders waiting to sell their stock. He'd avoid this.

He bought this years ago. It rose to over $30 but didn’t quite hit his buy price, then the wheels came off the car and he still has it. He was unhappy with some of the previous President’s actions but now they are making some deals that seem reasonably good. Their debt is huge. They may have to cut the dividend again. He is holding it because it has tremendous upside if it can recover. He expects a lot of write downs in the near future but is giving the new President the benefit of the doubt.

Good entry point. It has been a poor performer. Trend bullish on the technical. Dividend quality is not the greatest. Finance business has been performing excellently. Momentum in the manufacturing space will bode well for this company.

This is a classic “buy when there is blood in the streets.” If you believe oil prices will remain at these levels for an extended period of time, this company will benefit from higher levels of capex in the oil sector. This is very cheap for a global equipment company. Yield 3.2%. (Analysts’ price target is $16.10 )

Maybe it's hit the bottom. There's not much growth here. The CEO is busy selling assets. Doesn't expect GE Capital to make much money. She's waiting to see how the new CEO restructures the company.