04-03-2020, 03:27 AM
(04-02-2020, 09:28 PM)crimsonghost747 Wrote: RTN is not just suffering from exposure to the aviation industry through UTX, they are also suffering from exposure to UTX itself!You are definitely on record with that opinion. I currently see PH and the defense contractors down severely as well. Yes RTN is down worse than most. I liked the merger idea long-term because I know the US Defense budget is absolutely unsustainable. We're here now, and and printing unlimited money. Mergers are usually challenging to pull off at first. With the current economy, we'll have no idea if this merger is going well for over a year. They committed early on to paying shareholders back. Share buybacks are out of style, but hopefully dividends are not. There should be Div news very soon.
RTN has a pristine balance sheet. And they are operating in a sector that can survive all sorts of downturns and recessions.
UTX has a crappy balance sheet (at least compared to RTN) and they rely hugely on a single industry (air travel), which always gets hit badly in a recession.
I've always been super skeptical of this merger, because I know that RTN is gold. UTX... has it's moments but as we can all see it's a bit too vulnerable.
I really find it hard to evaluate the new company, and that is a bit troublesome as it's one of my largest holdings. If there was no merger I'd be buying with two hands but the dirt UTX brings with it stains the whole company.
Binary, I think the spin off companies may be solid. Both are excellent brands and viable in about any economy but this one. I am going to give them a look when they share details. I only own RTN so I would have to buy them.