05-08-2020, 07:11 PM
(05-08-2020, 06:17 AM)fenders53 Wrote:(05-07-2020, 05:07 PM)crimsonghost747 Wrote: I've been looking at selling RTX puts too.I just spent about an hour on the quarterly. I'd definitely appreciate some feedback from you. If you don't feel like a thread please PM me. The Q1 financial reports include CARR and OTIS so not all that helpful as this is the first for RTX. The CC transcript was informative and alarming, and I am not just being my usual bear. After you review tell me what I got wrong. Here is what I gleened.....
Need to look at the report they just released first though, it'll be crucial to see just how bad things are over on the commercial aircraft side.
Well, I actually just skimmed through the report really fast. It was a bit of a mess with CARR and OTIS in there indeed and I already know the commercial air side of it will suck this year and not even their CEO has a crystal ball as to just how badly it will suck. So I just looked at MY BELOVED old pure defense Raytheon's numbers quickly.
And the defense side is actually doing just fine. In fact better than fine. Revenue was up like 7% YoY and their book to bill was still around 1.5? Amazing if you ask me. Also don't worry about Saudi Arabia too much. Saudis are a big customer but nothing huge... I mean the whole international sales used to be like 45% of the total, and Saudis are just one of the many many many countries included in that. There are other pretty big spending oil countries on that list though so yeah the low price of oil could, on a longer term, lead to some decreased sales.
I am really worried about the commercial air side of it though. It'll be a drag for a looong time. Even if Boeing can get the max certified and somehow delivered AND get their production back up it'll still be a while before they burn through the inventory.
Also, pretty decent job with the LHX put. I've been eyeing it too. I don't think I'll be selling those RTN puts with that report and the subsequent increase in share price.