People's United Wealth Management CIO: There Will Be Some Turmoil As GE Goes Through Restructuring, But Long Term We Like The Stock

General Electric Company GE is planning a massive restructuring of its businesses in the coming years, starting with selling a substantial stake in its financial services arm GE Capital. While skeptics are not too happy with this, investors have shown faith in Jeffrey Immelt's vision by sending GE shares soaring on Friday.

John Traynor, People's United Wealth Management CIO, was on CNBC recently to discuss why he is bullish on GE.

Holding On To It

"We have Overweighted the stock in our equity income portfolio," Traynor said. "We like the stock, we have liked it for a while. We were anticipating a restructuring. Friday's announcement really was a very positive surprise for us, but the fundamentals that we liked, the reason that we own the stock, is still intact.

Related Link: Why Is GE Selling Most Of GE Capital, And Why Now?

"And we like it going forward. There will certainly be some turmoil as we go through the restructuring, but long term we like this stock and we are going to hold on to it."

Ambiguity And Uncertainty

Traynor was asked if he convincingly knows what GE is going to look like in two to three years, when the company is going through significant changes and there's no accuracy regarding its fundamentals.

He replied, “That was actually the conversation we had this morning. I spoke with the lead of our equity income team, and we are actually going to hold off coming up with our earnings estimate until we get the first-quarter results."

Traynor continued, "We want to see what the restructuring is all about, and then we also want to take a look at their energy business. That's a big business for them, and they have invested a lot of money.

"We want to see what their forecast is going forward," Traynor concluded.