04-08-2020, 11:50 AM
(04-08-2020, 11:20 AM)DividendGarden Wrote: Added to CARR (one of the two spinoffs when UTX & Raytheon merged to become RTX). I'm not interested in OTIS, although I'll hold those shares forever. CARR seems like it should be worth $30/share and it's trading at $14. Thoughts?
Watching them like a hawk. I mentioned that in my pre-merger thread. It is 1000% normal for spin-offs to dip so I wouldn't buy the initial offering. A million soinoff shareholders get awarded a small position and the majority just sell it off like always. Company doesn't want them anymore so why should I?
Info is very sparse. It's my understanding UTX dumped some debt on them. What a shock, not
They do have cash set aside for Div. $550M if I remember correctly. I know with absolute certainty Carrier is a premiere brand in heating and air conditioning equipment. That's a cyclical business. My thoughts are CARR is not as good as RTN was, but very likely no worse than the short-term outlook for position UTX retained in aircraft parts. The story changed big-time since they announced the merger plans. Give me a down market day and I'll be nibbling some CARR. OTIS gets cheap enough I'll consider that too. Another good brand and the service contracts are much of their game when when new buildings aren't going up.