Bike...negative interest rate bonds have been around for awhile. Germany isn't the only country that has issues them...Switzerland, Denmark and Japan have issued them as well. As to the question of who would buy such a security, just google "Why would investors want to buy German sovereign debt at a negative interest rate?" and take a look at the article from Quora that comes up. I found it interesting.
Looks like Steve has taken his ball and gone home. Too bad, but he asked a good question--is UTX better off today than the last time it hit a 52 week low? I think the answer is unequivocally "yes". The last 52 week low was in October...since then the corporation has divested itself of it's lowest growth division, it's cash position has improved, it's major product investments like NEO and the 787 program are winding down, the building systems organization is in the process of an overhaul and a major acquisition is on the way. The bad news with this stock is out, and the market, as usual, has overreacted. Many people would consider than an opportunity.
@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.
W2B,......There you go again, assuming that most of the posters here are in the UTC 401-K plan. I would ask you to offer evidence that your assumption has any basis in fact. Free markets determine oil prices, interest rates, gold prices, cost of bananas, etc. The FED reacts to market excesses and tries to provide stability in the economy. Would you prefer Jimmy Carter interest rates in the 19-22% range?...........Kid
I have been on this earth 68 years and been investing most of that time. There is something that confuses me and maybe someone can shed some light on it. It is my understanding that Germany is issuing a two year bond with a negative interest rate meaning if you buy their bond you will get less money back after two years. Who would buy a bond like that? It is bad enough paying nothing for your money but if Germany want you to pay them to hold your money wouldn't it be better to bury the money in the backyard? This world seems to be getting more crazy every year. We are very lucky to get the 3.5% but trying to figure out the stupid way they are doing interest rates is impossible. In my younger days I figured I would accumulate enough money and live on the interest never dreaming the FED would give us zero interest rates forever. Any thoughts on how they can get away with negative interest rates?
Your frantic behavior in talking the stock down is enough reason for me to buy...have fun. The squeeze is on...
Obviously bigsteve is short UTX stock and now beginning to question his position. The general market has been down big the last 2 days and UTX has been holding. UTX will be moving higher shortly...
my expectation is that the market has now priced in the SIK sale, and the new management as we see it now, and UTX will follow the DJIA forward and backward as it typically does. I'm still holding. You, BS, are the prime poster on here, overtaking Kid & Airborne. Honest answer from you: As the lead poster on here, always negative, "How badly short are you?"
There is no good reason to own UTX or any other stock now. We haven't seen anything yet. It will get much worse. Why anyone would buy UTX is a mystery to me. They must be listening to KID. KID lives in fantasy land where everyone lives happily ever after. KID is the only one making money in this market because he knows when to buy and when to sell. The truth is UtX is having a problem with the Euro and the slow down in China. Not sure how the currency devaluation is going to end but doesn't look good to me. Cramer tell us the FED is not going to raise interest rates because of China's devaluation. I plan on living the rest of my life with zero interest rates. Apparently the banks are not strong enough yet to pay us interest on our money. Doubt they will ever pay us for our money. Maybe we are looking at Q4. Not sure what is going to happen but it doesn't look good. Stay in cash until October. Crashes have been known to occur in October and that is the month where the market usually bottoms. Nice to be in the fix income fund at times like this.
Down 14.5%YTD is more than just taking a breather. Hayes has kicked this company in the balls and it won't be getting up anytime soon. There is no good news on the doorstep. Just a lot of wishful thinking. This company will never be what it once was.Hayes will get rich by raping the company and it's employees.
Sentiment: Strong Sell
I started adding to my industrials, including chemicals, last week as they weakened as mentioned earlier. If Buffett could buy a Precision Castparts, I could add to GE, HON and UTX. There is tremendous value out there if you are patient. Find those companies making strategic changes to enhance their future prospects that are not fully recognized.