company back on track and in a timeframe that satisfies investors and analysts culp was the ceo of danaher called a model of consistency, double-digit revenue growth. also a consensus that culp will be more aggressive and have a sense of urgency than ceo john flannery did a word that keeps coming up, outsider, in a good way. jeffrey sonnenfeld told me he's confident in culp and new lead director thomas horton will

flannery, one year there is danaher by the way.hat's not bad performance >> what explains that performance at dhr >> he made it into a healthcare company. he made it much more like some of this going up almost everyday and baxter, he made it into a company that was non-cyclicle. >> i think he's uniquely suited and trying to figure out what to do with the healthcare business. >> they already announced the plan back on june 6th to separate it out. they did not give us a lot of details and specific details they did say they'll aggressively drive forward in aviation power and renewable energy without healthcare. >> you are not going to say they're going to keep it >> right >> i don't know, i think they won't be giving away this guy is really outside he's really outside of ge. i mean that's why i think it is really up. >> what about the dividend and if you want to go through the math, listen they take $23 billion in impairment charge. you got to think of the agency is not responding on that. if you get downgraded, you are under pressure

in theknow what, danaher 20 years i covered it never took a charge. they have never done that.a minimum, maybe he will stop making bad acquisitions at general electric? alix: flip it. what are the different challenges he will have to face? >> going from big to small they have partied on the big asset sales that they've talked about, whether it is to help -- the health care business being spun off for the transportation unit being sold or beach ge also being sold out. it taken care of that. at this point, it is felt operational improvement and the power business as much more difficult than he has been in. i think he has the right tools in place. it's the right leader for ge. david: for how long it often when you have a situation like this, you have the independent outside director and lead director come in for an inner -- for an interim period. is it plausible that he could run ge for some time to come? >> i believe he is 55 years old, so hopefully 55 is the new 35. david: we're hoping. the average for a ceo tenure is about 13.5 years, so it may be a long stay. david: the averag

this is different because ge is a turnaround story and danaher fit together and made sense and ge don't fit together so well with all the parts but gets the benefit of the doubt on day one. >> how long is this likely to take too early to buy the stock expecting that maybe in five years it would double? what do you think? >> well, under mr. flannery i would say more than a year and he wasn't given a year so, you know, certainly it's going to take some more time to identify a strategic direction, he gets a chance to reset the company, maybe health care is not going to get spun off or maybe the parts sold make more sense today. so he getsa chance to take a look at the company. that takes several months right there and to start implementing his vision takes up to a year so it's going to be a while, but in the meantime, they can set reasonable financial expectations and meet those expectations which will give investors and analysts confidence that they know that they're on the right track. >> jim, i think it's only fair to point out he did inherit many problems and only had a year to do what

, dbs, danaher business systems.e that change ripple through ge in time >> deane, it's been good having you on, i appreciate your candor and willingness to come on and debate this stock, i appreciate it very much >> absolutely. >> rbc's deane dray. give me the last wrap here >> ge has $18 billion of debt that matures in 2020 they have to pay down the debt before that maturity rate is going to be a lot higher than now. >> we'll be right back dow is down 260. we've got final trades coming up oh, and there's the closing bell. (sighs) i hate missing out missing out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪ not long ago, ronda started here. and then, more jobs began to appear. these techs in a lab. this builder in a hardhat... .

danaher is on our bye list danaher has a great record of generating free cash flow, more net income everyhat's a big problem for general electric, they're going to fall short on cash flow in this quarter. culp is the guy to turn that around >> what keeps general electric being a sell versus the hold you have it at right now >> the franchises they have. i know they're going to spin off health care. but they're so strong in aviation and i do think they're going to be able to turn the power business around. i think it's bottomed here i think there's a good chance for a new catalyst with the ceo, new ceo. but we're going to wait a couple of quarters to see if there's a progress in the turnaround of the power business, maybe before moving it back to the buy list >> i thought it was interesting, you said the transports have sort of rallied as the trade worries have eased a little bit. how do the easing of those trade worries affect boeing? >> a lot boeing has got maybe seven years of backlog and a lot of that is to china. they sell very important products, right? it's not grain for canadian pac

he worked at another industrial company, manufacturer, danaher. he was there 14 years.ing that time frame he turned it around. he narrowed the focus. that is what you're seeing on the screen. ge, the board hoping to do for the country, we're seeing so many issues with the company, stock being up not even a buck. so many people still hold the company within their portfolio, their pension. even producer of our show says she is still holding on to a bunch of these stocks. cheryl: a lot of folks in the building. >> a lot of folks in the building still own fe. there is a lot riding on larry right now. cheryl: what does it mean for the dividend? >> excellent point. cheryl: is it going away? i don't know. >> you changed the ceo. you have given the previous ceo john flannery over a year. you have technically he was in there a little over a year which is difficult to change such a large company over that amount of time. can this new guy do the exact same thing? they did cut the dividend. that was the second time since the great recession. there are rumors it could happen again.

company back on track and in a timeframe that satisfies investors and analysts culp was the ceo of danahera model of consistency, double-digit revenue growth. also a consensus that culp will be more aggressive and have a sense of urgency than ceo john flannery did a word that keeps coming up, outsider, in a good way. jeffrey sonnenfeld told me he's confident in culp and new lead director thomas horton will bring a new outlook for ge. >> the market seems to appreciate their communication skills strategic strategically, i don't think there'sing in wrong with the path they were on other than the fact that you might almost argue -- and people are going to blow up on this -- they were moving too fast! >> investors should expect urgency in action. even with that, analysts feel it will take a change in culture and possibly organization to improve this stock price. >> frank holland, back at headquarters thank you. >>> lights had gone dim on ge for a long, long time since august 28, 2000, lost almost half a trillion dollars. yep, you heard me right. half a trillion dollars in market cap, more than

one other one to highlight from earlier, danaher they talked about price being one thing to address and where we might reduce changes in supply chains and where might we ship to manufacturing to various locations. we have some flexibility in there, particularly associated with consumables as you talk about the way companies are dealing with it, it could be passing along costs, absorbing in profit margins, trying alternative ways to source in the supply chain, all of these mentioned we will monitor so see what other companies say as earnings season progresses. more updates as things develop back to you. >> good one, dom, thank you. >>> the markets, dow is down 133. watching that. s&p down almost 13 mike santoli back onset, to follow up on what dom said, mike, do you put tech strom and others in a basket, set it aside or does it effect everything >> not quite set it aside. i think it puts investors on alert looking for the head winds. it is across the board more global, more industrial that's where the focus will be now. and i think one of the disconnect is that the s&p 500, stock market

the new ceo lawrence culp, former head of danaher, a tech company.ars, new brain will really help ge be more streamlined and be more efficient. the stock is up 3%. no longer a dow component but that said moving up all the same, helping to limit, as you can see this, limiting broader losses. liz: one of the old bull names. so many people had it in their portfolio. deirdre, thank you. >>> we're in october, and it's fall, fall we have fashion apparently making a comeback, so says our next guest, who believes there are a few fashion companies, specific ones particularly well-placed to take advantage of changing styles and you should try them on for your portfolio. kim forest says so, fort pitt capital group vice president. apparel, places that sell them bricks and mortars was yesterday. you're telling me no? >> they are not but they are probably not the things you're familiar with or maybe even the places you like to shop. it is where millenials want to go and how they want to buy. all of the stocks that we like right now have an off, online component as

inquisitive on the 60 --ut with some of his successful tenure at danaher.t did not respond in the same way. it doesn't show how much debt they had. this is a debt-laden company that needs to maintain its tightening. so? they be able to do >> it is a great question. is getting ge through some of the asset management and continuing with -- i think the look atating agencies their strategic plans and wait for that to come into effect over the next year, it should continue to give them leeway because there is a leveraging plan in place. there are some humps to get over. romaine: are they going to give culp the time to do that? they didn't give a flannery the time. >> i wish that i had a crystal ball. news releasesome suggesting digital sales. that could bring in additional liquidity that should get some cash in the door. with the ceo announced that -- islso announced a new this the so-called kitchen sink and has the new ceo given himself a sufficiently low bar that he can jump over it? thee don't know if it is .itchen sink yet will have to wait until third quart

over abruptly at the start of the month highly respected ceo due to the high returns he delivered at danahers plans to accelerate a turnaround, though details not likely to come until later number two, guidance more pain and power means ge will fall short of previous 2018 earnings and free cash flow guidance now, that outlook had been eps $1 to $ 1.07 $6 billion in adjusted free cash flow but the street already priced in a miss with 88 cents the current consensus. cash is key. that's been shrinking dramatically over the past two years alone. that brings us to number three, which david just mentioned, the dividend is culp going to cut or suspend it it was already halved last november given those issues at ge capital which has a $15 billion insurance charge,m divestments, it might also be welcomed though details matter since shares are still widely held for that very payout. so q3 consensus. right now, 23 cents a share on revenue but as rbc surmises, those should be afterthoughts since attention will likely be on how culp is, quote, triaging ge's hornet's nest of crises, cry shows that have se

larry culp did it at another company, danaher. he was there 14 years. turned the company around.ope a respected outsider, 55 years old can come into the company to fix things. the stock has been plummeting for years. the company faced a lot of profit, shrinking margins. the power business is struggling, they're hoping to your question, larry culp, this new guy will come in. that is very unexpected change. the board had john flannery he was there not even a year. august, a little bit over a year. a year and two months. so the reason they moved so quickly they expected some movement. you had his turn around plan, john flannery said would focus on aviation and power. didn't convince investors. still the drop in profit that the company has been faced with. they thought clock is ticking we need to move quicker, let's put the new guy in. if you look at precedents. before flannery past 54 years they have only had four ceos. this is out of character. i have more bad news the company announced. the stock is up now. it could be a terri high, why? the company also said they will put down a