GE Aerospace (GE)

He would not enter here. He has been negative on GE-N for 15 years. $21.29 model price, negative 21%.

This has 2 periods of seasonal strength. One is around this time of year. This is an industrial stock and responds like an industrial. Normally from the middle of October to the end of the year is one period of seasonal strength. The other one is from around the end of February to the end of May. From around the end of the year until February, the stock doesn’t do very well, so you may want to take some money off the table and look for better opportunities. If you are a longer-term investor, you want to hold until May of next year.

Dividend is definitely safe. They pride themselves on stability and long-term benefits to shareholders and shareholder value. Have some exposure to Russia, but not extreme and isn’t something that should be factored in. Their oil exposure is something you have to take into account. Have been acquirers of oil properties and oil expertiseover the last several years. In divesting other areas of their business, oil has taken on a larger percentage of their business.

Is in transition. It was a much more of a financial stock and is not in the throes of being more of an industrial and less of a financial, but trades more like a financial still. Cheaper than Honeywell or 3M or UTX-N.

We are actually in a period of seasonal strength for some of these industrial stocks. The average gain for the month of December is about 4.1% and is positive 65% of the time. However, looking at the chart, there is some resistance at about $27. He would like to see it clear that. If it did, that would be a new Buy signal. He would hold off for now and wait for it to clear that resistance. Even though it is strong in December, it tends to be weak in January and February, followed by a spring run up from March through to May.

A great company and there is nothing wrong with it. Has been kind of grinding higher over the past few years. However, there are so many moving parts that you never know what is going to cause the issue this year. A lot of leverage to energy and power markets. Too hard for him to figure out.

If you have a wide number of US holdings then you should be more specific than this one. Otherwise he thinks this one will be much higher in 1 to 3 years. Prefers companies with narrower exposure.

Recently sold his holdings. Didn’t really like the Alstom deal they did in France. It was a good deal when it was first struck and then Siemens came in and made a bid followed by the French government getting involved. Also, thinks the strength of the US$ against the euro is going to continue.

Apple (AAPL-Q) or General Electric (GE-N)? Two completely different plays in different segments of the market. This is obviously more of a play on capital spending. They have got out of a lot of their consumer businesses and will be spinning out the leasing businesses. Some of their capitals spending customers are slowing down a little, so he would be a little concerned there.

A better company today than it was in 2000, with less risk attached to it. Management has done a fantastic job. Dividend is secure. This is one that he looks at, but it never seems to be cheap enough. Not expensive.

This is getting more positive coverage right now in the press. However, it doesn't do it for him. There are better names that are more focused that he prefers. If you are there for the dividend, continue to hold.

If this company starts going up and the small caps go up, that is a positive sign. This is a significantly seasonal time for this company, and we should start to see it leading the way. Industrials have just started to pick up a little bit. The chart shows this company has been off its support line.

Earnings last week beat expectations. Has the highest organic growth rate when it is one of the world’s biggest companies. The new GE is totally different than the old one. They are deemphasizing financial services. They will split out the rest of it next year. Likes what management is doing. They are focusing on business that don’t need as much capital. He doesn’t see a lot of growth relative to the stock price. At the end of the day it is a great business. He just can’t pay up for it at this level.

Likes this. The industrial space makes sense at this point if the economy continues to move forward. Globally speaking, and specifically in the US, these types of names are good to own. Has become quite oversold.

His model price is $19.80 a negative 17%. He has been a bear on the stock since the $60 level. Doesn’t like what they are doing. There are one or 2 positives. Starting to spin off their GE Capital from their portfolio, but they should be doing a lot more.