General Electric (GE)

(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.

A very cheap company on a “sum of the parts” basis. If you look at all the various businesses and do a standalone valuation analysis and add them all together, you get a value that is in excess of the current stock price. Reasonable dividend yield. Will benefit from an improving economy.

At the height of the financial crisis they really got into trouble with their financial side. Growth on the industrial side has been very good and they have improved the financial component of the business. However, if financials falter in any way, shape or form, this company will go with that. He is pretty constructive on this company.

They have quietly been restructuring since ’08. Market continues to punish them for GE capital. Thinks that what they have done has taken them back to their roots and their growth will be as good as or better than other industrials. Market will give them back their multiple.

His Sell target is mid-$30’s. Have increased their dividend 4 times since he bought it. Likes the company. You don’t get more of a bellwether of the economy then this one. Smartly managed.

His model price is $20.26, a negative 16.75%. He is not a big fan of this company. They need to do a lot of restructuring, especially of GE Capital.