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NYSE:GE
A turnaround story that's broken $10 faster than he expected. GE has a huge tailwind from Boeing, whose 737 Max has now been approved; GE's aerospace business will boom because it makes the 737's engines. This boom will give the CEO breathing space to build up GE's healthcare and power divisions. His renewable business should benefit under Biden. In 5 months, vaccines should allow many people to fly again, which will be a huge windfall for its aerospace business.
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.
Their annual report is good-they're playing more offence and he now believes in their wind division. But they need travel to get orders from Boeing which pushes this stock up. He supports the CEO who has cleaned up the balance sheet.