Good value......will cost roughly 50% of Nortek's annual revenue. When UTC bought Chubb and Kidde as it entered the security business it got both for a song as they weren't making any money. Nortek is similar. In short order UTC will make Nortek's ~ $2.5 billion business profitable. It's a small deal....but, if UTC makes an offer it will be because the latent value is hard to pass up.
Either scenario is possible, Although Market will eventually even out. Bottom Line, China is not imploding, they are restructuring and finding their footing after 10 years of growth. China won't let their market falter, just like we did with FED policies. I am long, and believe this was a good buying opportunity, which I took advantage of. As far as pushing the stock ?, I am more defending it. The Geniuses on this board were patting themselves on the back as UTX fell, However the broad market fell, UTX fell, Market comes back UTX comes back. It does not take a genius. My contention is that UTX is a good long term, that was put on sale due to overall market conditions. What reason can anyone cite, other than the sky is falling. As I indicated in an earlier post, Sikorsky move was unpopular but potentially necessary to mitigate exposure from that division and bolster their more profitable divisions. That is a fundamental growth strategy, Not popular, but financial driven. Will China slowdown make a dent, sure. But UTX is well diversified, and strategic moves now will make the long term value seem apparent.
Nothing has changed. China's economy is still weak. Oil is still going down. We still have to go through September and October. This is the dead cat bounce. Fixed income is the place to be.
The question you should be asking is how much exposure does UTX have to China? That is the stock you are pushing. When you ask how much exposure the US has to China it is my understanding that China is invested in Treasury bills. Not sure what that means if they have to sell them to boost their economy. I am really unclear as to what the devaluation of the world currencies really mean but we are getting ready to find out. QE and negative interest rates are a mystery to me since I have not seen this nonsense in the past. Now the FED has interest rates stuck at zero and will not dare raise them. Not sure what QE is are how it can continue to save us. Everyone wants to blame the shorts. The market is run by financial institution and any thing said on this board will have no effect. $50,,000 is nothing in the whole picture of things. Cash is the best place to be right now because the market is a scary place.
@2bik, China is a distraction for now, They had to get their currency in line, the US reaction to this is overblown ( what is our exposure to the Chinese, 1 or 2% of our GDP ) We needed a correction, but fear mongering is at play and driving panic. As I mentioned on a previous post, Companies like UTX will be able to strengthen their portfolios at discount prices and make solid moves for top line growth. The other side of the coin is, that at these prices the dividend becomes very attractive, but this is for the longs and hold crowd.
The shorts want more carnage and continue to try to drive panic.
Let's revisit this at the end of September when all the traders are back from vacation.
I'm Holding now, not selling now. That's my personal decision. If I had an extra 50,000+, I would be buying more. UTX is a solid company and will rebound nicely. The whole market is down, no genius needed. Buy or hold good companies on the dips. Unless you think the US economy is somehow collapsing , then invest in tin foil hats.
Ambarella and GoPro hit three-month lows in the stock market today amid the market's broad sell-off. Ambarella has been getting a lot of heat from short-seller Citron Research, which says that the chipmaker's valuation is "ridiculous." The chipmaker's shares gapped down in heavy trade, marking a fourth straight day of losses. The stock is now down about 30% from its all-time high reached on July 23. Citron published a report on the GoPro chip supplier in June - sparking a sell-off - and another one in late July, which outlined reasons why it believed the company would trade back at the 90 price level on its way to "much lower." Meanwhile, GoPro sank in above-average volume, marking its sixth straight session of losses. The stock is back below its 50-day and 200-day moving averages, and is now about 50% below its all-time high reached last October.
C'mon Kid, you pick the one negative article out of a sea of rising sales, earnings and revenue.
Citron is a hedge fund with a short position on AMBA, they have a vested interest in throwing out some doubt.
And guys like you take the bait, even copy and paste it.
QCOM "is looking", big deal., no I'm not worried.
Besides, by the time AMBA growth prospects get threatened, I can always move over to UTX and get it at $75/share.
Speculation is cheap, the AMBA earnings numbers will do the talking on Monday after the bell.
Mr. whiz your sentiment says Hold. If it is such a great buying opportunity why doesn't your sentiment say buy? Doesn't the thousand point swings we are seeing scare you a little? Do you think it might be wise to hold up on the buying until things settle down in China?
I just read an article about Lenel. They were bought by the buildings division of UTC. They provide security. They provided it for the Little League World Series. They provide a bunch of other security stuff Security - I am betting that is going to turn into a huge future business for UTC. Look at all the evil in the world.
You never responed to your question, that I answered. Here it is again
@BigSteve, Yes, I believe that the fact that they are in the drivers seat with cash reserve's allows them to add to a profitable portfolio at discount prices. Sikorsky, although a great company could not deliver the growth necessary, Hayes and Co. knew this. Pairing off this division although heartbreaking for many, does not factor into the long term picture. Stocks do not react to what is, they react to what may be. Right now UTX can buy company's and divisions that support their most profitable divisions. You may be right, UTX may falter a few more percentage points, However, for the longs, this presents a great buying opportunity. If UTX announces another buy similar to Goodrich, then what.... Everybody will want a piece of the action.
not_so_calm,..........."Shares of video chip maker Ambarella (AMBA) are down $8.24, or 8.5%, at $88.80, after re/code’s Ina Fried yesterday reported Qualcomm (QCOM) is looking to move into the drone camera component market, citing remarks from an interview with Qualcomm veep Raj Talluri.
Ambarella’s sales of its video capture parts to the drone market has been a consistent source of upbeat commentary from analysts.
Fried’s report prompted Citron Research this morning to update its negative view on Ambarella stock, writing that the shares could drop to $70":...............The guy who founded QCOM is from my home town, he sponsors 4 full college scholarships to graduates of his and my high school. If QCOM choses to compete with AMBA, I would be concerned if I were you.........Kid
C'mon Kid, all stocks are down and the highest flyers take the biggest hit.
It will be a completely different story next Monday when AMBA reports.
Unlike UTC, the AMBA numbers will show solid earnings, revenue and sales growth.
Despite the market turmoil, China, the dollar, rising rates, boo hoo, boo hoo, AMBA will show growth.
I bought this stock at $40 and still see no reason to sell, keeping my seat for another earnings day party.
Wish I had some cash like Biker, I'd be buying more AMBA shares.