GE Aerospace (GE)

(A Top Pick Aug 31/15. Up 24.28%.) This company has reinvented itself. They have moved a big part of their business into service. The servicing part means they are going to get fees and contracts. He really likes the outlook and thinks it could go significantly higher.

He likes this and the fact that they have undone all the financial things. It is no longer a financial company, which is good. That puts it outside of the federal regulations. The multiple accorded to industrial companies is higher than financials. They are doing some good things to grow the company. What is hurting them short term is a fairly substantial exposure to the energy sector through the equipment they manufacture for them.

This has been dismal for the last 15 years. At that time, they had an almost identical EPS that they do now. Sales have been anaemic. They tripled their CapX, and yet have very little to show. Absolutely a “show me” stock. There are other industrials he would go to before this one.

This has done an excellent job of really focusing on what they do best, which is industrial, mechanics, software, and turfing their financial division, which caused them years and years of headaches. Definitely one you could put in your portfolio, and be very comfortable owning over the long-term. A little expensive now.

This has had a great run, so he would recommend waiting for a selloff before picking it up. Maybe pick a target price of 5%-10% lower. This company is leading the world in being the Internet of things. A fabulous company that is firing on all cylinders.

We are getting to a point where the basic fundamentals are running out in the markets and you need to look for stocks that are re-organizing. Model price is up to $25. It keeps going up. The fundamentals will keep pushing the stock up. You want industrials with the infrastructure products coming up.

Got rid of the divisions which had really caused them trouble. This is an industrial company, certainly on the energy and infrastructure side. High debt levels by governments and infrastructure spending will benefit them.

Given that this is such a big company, it is difficult for them to move the needle in terms of increasing earnings at a rate that he looks for. However, if you are looking for steady company that is going to be around in 3-5 years, it is probably a safe bet. On the way he constructs portfolios, this is one he would be avoiding.

Thinks this has already seen the big upward move that you are going to see for a while. However, there is not a good reason to rush out and sell. They have done a great restructuring and gotten rid of their financial services. The dividend is safe and there is still growth in the power side. Probably the kind of company you want to own right now. It has some downside protection and a global asset base. This is going to benefit from infrastructure spending.

It is hampered by the strong US dollar. But it is a great company with great products. The jet aircraft industry shows terrific growth going out over 10 years. Exporting is hard with a strong US dollar. He thinks there is room for dividend growth. It is a bet on the US economy.

This is one of these companies that you have to own. It has had a big move, so wait for a down day in the market. In the meantime, write a Put at around $28-$29 between now and January, and you get paid $1-$2 a share, and hopefully you end up getting a hit.

Has a large interest in financing. The 1-year chart shows it has been in an uptrend and making new highs. The 5-year chart shows the trend is very healthy. The stock should go higher and he would recommend it for a longer-term hold.

(Top Pick Jul 6/15, Up 23.68%) They are in the midst of transforming themselves back to what they were, an industrial Behemoth. They expanded into the energy sector (services). The market is rewarding them for all of this.

Has recommended this twice in the last year. As it became less focused on financials and more focused on their industrial business, he thought it became very, very attractive.

(Market Call Minute) It is trending upwards as it is restructured. It is between a hold and a buy, a warm hold.