04-02-2020, 09:28 PM
RTN is not just suffering from exposure to the aviation industry through UTX, they are also suffering from exposure to UTX itself!
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.
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.