GE Aerospace (GE)

At the end of the day it is not cheap. Trading at 14.5 times 2018 earnings. It is riskier. He thinks there are other industrial names. Probably will turn around but it doesn’t look great.

(A Top Pick September 5/17 Down 41%) It has been a heart breaker, despite being the second largest holding by retail investors. The market cap loss last year has exceeded that of Bear-Sterns and Leeman combined. He is doubling down on his investment based on their recent earnings. It is still the 13^th largest revenue generating company in the US. It is just a question of their focus. Going forward it is trading at less than 1 times revenue, so there is upside. Yield 3.3%.

He's been negative on this for a long time. It's a poorly run company with little credility left. Their cash flow is a mess. All their divisions are struggling. They've exited divisions that had some positive runway and went into areas that were struggling. It will continue to fall. The company may break up down the road.

They have been in the penalty box for a while, but the recent earnings are a good step for the road to recovery. It is a great business, but there were management issues that were not apparent. They have a great brand and it might be an interesting buy here.

What made them terrific before may not continue. Too many woes with restructuring and new management. It's an unfortunate situation. He's not a fan of braod conglomerates, because he can buy individual pieces instead.

You should sell. It is going to take years to improve things and there is going to be so much selling pressure. It is cheap, but you are not getting a great stock. Management has to make major changes. There are better opportunities in tech. (Analysts’ price target is $17)

He recommended this in January. Don't bother with this anymore at your age (caller is 91). Disappointing. Move on.

Has four divisions. Aviation is doing great. Power is middling. GE Capital has been a problem for a long time. Plus, a their business in oil services us also weak. GE Capital will earn better with rising rates. Down the road, GE itself will rise. Buy today and hold it for the long run.

Warren Buffet is interested. A year ago he said Larry would be interested in the mid-teens. There is nothing to tell you that now is the time to buy except a really good value investor sniffing around. There are too many uncertainties. It is interesting and speculative at this point.

This company has been in the news a lot with stories of weak fundamentals and poor management. The practices are probably culturally ingrained and will take a long time to change.

Ask yourself, If I didn't own it today, would I buy it? If you answer no, then sell what you already hold. Don't get emotional. Mismanagement has caused their current woes. It will continue to fall and eventually the company will break up. Move onto fresh pastures. Every investor has faced this situation.

He says GE has had management issues, but they should be able to turn it around. If you are buying this, you are hoping to purchase a stock at a 50% discount hoping it will return.

He bought it in the recession when it dropped to $15. It has serious problems. It has come down so much that there is an argument to buy more but it has so many problems that he is not ready to buy now. For now he is holding and not sure that he still should hold it. He should have sold it at $25 when Warren Buffett sold it.

He thinks this company could fall to $12 from $14.55 currently. There is more gaps that are likely be exposed as the regulators are in looking at their books. A sad situation.

They've gone through such a transformation in the past few years. Until the dust settles and they know how they are, don't invest in it.