GE Aerospace (GE)

It is fine to buy right here as a core piece. It has slowly recovered off the highs and has been cleaning itself up. It is a great play for improving industrials. It is a reasonable entry point. It won’t be a home run.

This has done a great job of redistributing its balance sheet and getting rid of the financial services component. Feels it is a little rich at current prices. It is a leader in healthcare, an area he likes. A good quality industrial company. Balance sheet is in good shape. Something you can own if you want to have a well diversified industrial.

Probably one of his favourite companies in terms of safety. He would buy this for the long-term. They have jettisoned their financial services business, which is virtually all complete now. It is now wired up and ready to go. If we do get a recession in the US, this will be at acquisitive company again.

This is doing all the right things. He likes it for the dividend of about 3% and its moderate growth. They are shedding off excess that maybe they shouldn’t have been in over the last 10-15 years. Continuing to shed assets that don’t make a lot of sense, and focusing on their core competency. However, the stock has moved sideways for a long period of time. The 200 day moving average is just moving sideways and slipping up ever slows gradually. At this price, he may take profits in order to enter at a lower price.

A name he is looking at closely for an entry point. Have done a tremendous job in selling GE Capital assets, and are now essentially a pure industrial play. The integration of their huge French engineering company acquisition has been digested for the most part. Trading at about 20X PE. Dividend yield of 3%.

He likes this because it is continuing a transformation from being a financial services company, and more into what it was in the beginning, and industrial company. This is industrial, it has healthcare, makes equipment for the energy industry. He likes its return.

(Market Call Minute.) He wasn’t happy with their Austin deal. It was highly diluted through political influence.

She likes this now that they’ve spun off the GE Capital. Before they were really valued as a financial firm, which weighed down and kept their multiples down. Now they can be valued as an industrial. Sees higher potential for growth as well as multiple expansion. Also, has really good growth in international markets.

Currently looking at exiting this. He has done very well with it, and has traded in and out of it a couple of times over the last couple of years. His concern is that the stock price has started to flatten out back into the November-December phase. It got to the $32-$33 level and really hasn’t broken above that. In March it got back to the $32 and then started to break down again. If there is a bit of a breakdown in the market, this is a bit of a barometer and the stock is going to break down too. Dividend of around 3%.

He took advantage of the recent rebound in the share price by selling his position. Has concerns about the US economy, and this company is quite sensitive to the macro environment. It could suffer if we see bad economic data coming out.

He likes the company and is looking for an entry point. There is some sort of stability or base building at these prices. Have executed on what they said they were going to do in getting rid of their financial assets, which means they can give up their FDIC insurance which required them to hold back capital. Great dividend.

They have their fingers in everything, including things we won’t see for another 30 years. It is literally a bellwether for the economy. Well run and has great technology. However, any time there is major economic worries, it affects this company more so than any other. On companies like this, you really have to pay attention to valuation. Asia represents a 5^th of their overall revenue as of last year, and he would anticipate that to grow.

(Top Pick Apr 17/15, Up 17.24%) He likes the transformation back to an industrial company. They have a big oil and gas exposure through making equipment for it. He likes the new mix.

A great company and have managed it well. Now trading at a more reasonable multiple. Certainly not a table pounding buy, but a solid hold.

(Market Call Minute) He is taking a close look at it. They have done a good job of executing, getting rid of GE capital.