Fuel blowing out of the carb

Sounds like a problem with the intake valve. Something like it is not closing as quickly as should due due to low valve clearance or carbon build-up.

Well, Try Sea Foam if it will run. You need to get the engine hot. Put Sea Foam into the intake. Make it stop and let it cool down. Restart and that should loosen some of the carbon.
I know it sounds crazy, but it works. Google it also.
I remember we used to pour some water into the carburetor and this would clean up the valves.
Don't knock it unless you try it!

Well found the problem with the intake valve. The bottom retainer was in 2 pieces. So that explanins the intake valve not doing its job

Now the question is can I just replace that retainer, adjust it and be good?

I am not in to patching a problem but prefer to have things last long term on my repairs.
 
Personally I would pull the head, remove the valve in question and inspect it and the lifter for damage. Replace parts as needed.
 
Actually valve adjustment would still require the removal of head on L-heads as it involve filing the valve stem tip squarely. A process that can easily over done quickly if you get too aggressive with the filing. This is if the clearance is too little.
 
 
After installing a new valve, it is lapped with valve grinding for the valve face and seat to match. If the clearance is still too much you may only need to grind these a little more to get the clearance back in specs.
 
Note: Before any grinding or filing check the valve lift on both valves as they should be nearly identical. This checks for worn cam lobes. This is the amount the valve moves when the clearances are within specs.
 
Once done then you should good to go.
 
Service Manual link:
http://www.mymowerparts.com/pdf/Tecumseh-Service-and-Repair-Manuals/TECUMSEH-SERVICE--REPAIR-MANUAL-3HP-TO-11HP-4-CYCLE-L-HEAD-FLAT-HEAD-ENGINES-692509.pdf