GE Aerospace (GE)

Decent industrial but not his favourite. They are really, really big, and when they get that big, it is very hard to outmanoeuvre the rest of the market. They have some good spots and a good disciplined management team and he would expect the dividend to grow.

(Market Call Minute.) Growth is estimated to be about 6% over the next year, not strong growth.

Analysts don’t know where the stock is going. If support broke that would tell you there were problems. You are risking 10% down for 30% up. But if it breaks resistance you have to manage your risk. There is a risk of a correction in the industry at the end of the next quarter.

Has transformed from what it used to be. Credit side needed to get better, big exposure to real estate in Europe. Have done what they can to reduce the credit side. The industrial side, in his opinion, is the best in class. It becomes a bit of a margin expansion story at this point because the stock has had a pretty decent move here. Thinks they can continue to do that. $32-$33 over the next couple of years is not unreasonable.

He looks at this as an industrial stock. The world economy is turning and improving and he likes industrial stocks. Great company. Has had a good move and he thinks it is still going to go higher.

(Market Call Minute) Likes more focused plays. Too diversified.

Has done really well over the last couple of years. The industrial/operational side is doing really well. The real problem for them is that it still has the big financial portfolio and it has been trying to dispose of some of it. Although we are now at a five-year high, it is still well below where it was a decade ago. You might do okay over the next year or 2, but you might want to see how they get rid of some more of their financial products.

Would buy tomorrow. Represents good value. It was a top pick in August. It was trading at a multiple discount to the group. They are still paying for 2008 with GE Capital. GE has legs from here.

(Top Pick Nov 7/12, Up 18.96%) Industrial. It is the market. 3% dividend. They are global. Will continue to do well. Dividend growth of 10% per year. Slow and steady growth in the high single or low double digit range.

Continues to add into new accounts. Great economic sensitivity. Stock suffered because the company got too big. He now thinks they are doing a good job.

One company that Warren Buffet did not do particularly well in. Company is going nowhere. $20.45 model price, -16% differential. It will stumble along with the market. There is way better value elsewhere.

Purchased this one about 3 months ago. In a nice uptrend from the 2008 bottom. Got their hand caught in the cookie jar with GE Capital with far too much exposure to the financial side of their business. Now trading at about 2 multiple points below what the average US industrial is trading at. Time is healing this company and they have streamlined their businesses.

They are into everything. He is big on infrastructure and GE is a play on this. He thinks it is a buy on any crater (dip in price).

(Market Call Minute.) Very attractive. In the industrial space, which is performing very well. Spinning off their financial services business.

Has a very good outlook for this company. Nice dividend, which he feels will continue to grow. Its financial services is what has held the stock back and they have been paring this back and just announced they are going to be spinning out there consumer credit card division. Has a good mix of businesses which are really growing including healthcare, energy, aerospace and energy services.