General Electric (GE)

It behaved differently than the other industrials during the last year’s correction in the sector. They are going to wind up with additional free capitals to buy back shares and increase dividends with. The sector is now recovering. 7-8% of revenues are from the energy space.

Very little movement in terms of revenue growth or earnings growth. Has been up and down for a variety of reasons. The company has not been well-managed over the last 15 years.

Trading at 19X forward earnings, which is a little rich for him. Likes that they are getting out of the financial services business and are buying back stock. He likes industrial areas which are struggling because of the energy space. Likes the healthcare space that they are in. Would be very happy owning this because it is a well-run company that has gone nowhere for a long, long time. Thinks the dividend is safe.

You should crystallize a dollar play if you own it. There was an earnings surprise. They are good stewards of capital. There was reasonable movement on the stock. Most of the portfolio rationalization has come through. Take profits if you have owned it for a while.

Have done some great things in restructuring. It was a wonderful story for the 2^nd half of 2015. Thinks you are okay to hide out here. Probably wouldn’t be jumping in now, given the huge move that it has had.

Now primarily an industrial company having sold off most of their financial division. Just reported, and by the reaction of the market it looks like there was a bit of a disappointment on guidance. They have programs where they want to become more efficient in their industrial operations, whether on the aviation side, wind turbine or their compressor business. He was buying at around $25, but was lightening up at around $30.

The consistent bellwether on the US economy. It continues to move along in the same way as the rest of the market. Sold his holdings in late 2015 in order to move into some other names. He likes the name longer-term. Valuation has started to get a little bit stretched. There are other names, such as Southwest Airlines (LUV-N), that he would prefer.

Has done quite well relative to the market and its industrial peers. Selling off their financial assets, about 10% of their overall revenues, and redeploying that capital through buying all industrial assets, as well as buying back a lot of stock. She has a target price of about $33 on this, and would want about a 15% return, so it is starting to get attractive. It’s on her watch list. Dividend yield of about 3%.

A phenomenal company and very well-managed. However, from an earnings basis, this is not a cheap stock. Selling at roughly 20X earnings, and there are so many companies that are selling for much cheaper valuations and offering better upside. Not attractive at this price.

This has done well of late. Got a very high multiple because of GE Capital in the past. It is now much more of an industrial company. Have huge oil/gas and medical imaging divisions. Doesn’t think this is ever going to get the multiple that it got before, but if there is good loan growth, they will benefit from that. Not trading at a very expensive multiple with a very good dividend which they can continue to increase. Feels there are better companies to buy.

(A Top Pick Dec 4/14. Up 24.6%.) This is doing so well because it is a different company than it was 5 and 10 years ago. It had become largely a financial company at exactly the wrong time. They have divested most of their financial and financial related assets and continued to buy industrial, health-care and energy type assets. He would still Buy the stock at this price.

They have been offloading finance assets so the stock has done quite well this year. You will get about 10% plus the dividend in return, but she would wait for a pullback to start nibbling on a position. They are buying back a huge amount of stock. She would like to see some organic growth from their industrial operations, however.

Hasn’t been a fan of this company. They finally evolved in the last 6 months, and are casting off GE Capital. His model price is $20.16, a negative 33%, but what will happen as they spinoff GE Capital, the balance sheet will look a whole lot different and it is going to be an industrial. This is a financial engineering play for him. Dividend yield of 3.06%.

They are down to core growth businesses. The growth may not pick up, but the balance sheet is in good shape. Probably single digit earnings growth. You can expect 5-10% growth plus dividend.

He likes this despite the currency headwinds. The company is finally changing back to an industrial from way too much exposure to financial services. They have been unwinding financial services for the last couple of years. You are going to see them continue to raise their dividend on a regular basis. Dividend yield of 3%.