General Electric (GE)

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.

Industrials have been underperforming and to a large part because they are multinationals. GE looked more attractive when there was more development around the world. Prefers something more domestic. There is no rush to buy machinery and heavy industrials. Rails benefit from the US economy. He prefers that, but has steered clear of this one and the whole sector.

It tends to bottom around the middle of October and then moves higher to the end of December for a two month rest before more strength. Technicals are not that good. A flat trend and below its 20 day moving average. Wait until the middle of October.

He has been disappointed that it has not gained more traction, but he feels they will with their restructuring. They are going back to their industrial roots. He would be patient here.

It represents broadly the US economy. He likes it. It has not been a great performer, but on a 5 year basis, it is going up. This year, it looks like it is trying to build a large symmetrical triangle. He thinks it will break out.

They have a big, growing, energy infrastructure business. They sold off many of their non-traditional assets. They sold part of their financial business. They are trying to reduce financial business to 25% of revenues. They are acquiring energy infrastructure businesses. Their earnings are growing and the dividend is growing. Industrials are going to do well.