
NYSE:GE
It's a mishmash restructuring play. They made a blunder buying back so many shares in recent years. Don't throw more more into this if you own it. Doesn't like how it's been run. Instead, he likes industrials and would buy Honeywell.
Struggling. Restructuring since the financial crisis. Trying to repair balance sheet. Aircraft still struggling, and too early to tell how long it will take to recover. Look at Raytheon instead. Defence is doing exceptionally well, plus aerospace and security exposure. Exceptionally well run.
Morgan Stanley's CEO expects positive cash flow in the second half of 2020. The stock rallied over 10% today after that statement, which he finds incredible. However, he doesn't know anyone who expects positive cash flow from GE. Expect Honeywell and 3M to go up along with this, at least tomorrow.
Still on the sidelines. CEO is respected. Its engine business is being impacted with Boeing. Not sure what earnings and cash flow profile will be a year from now.
Stockchase Research Editor: Michael O'Reilly GE has floundered for the past several years, but new initiatives are beginning to change analyst outlooks. The company recently announced its plan to abandon new-build coal-fired plants in favour of renewables and natural gas projects, including wind powered offshore windfarms. Goldman Sachs recently resumed coverage, looking to a $10 target – more than 35% upside. We would trade this with a $6.00 stop-loss. Yield 0.55%. (Analysts’ price target is $9.17)