United Technologies upgraded to Buy from Neutral at Goldman
Goldman upgraded United Technologies based on a strengthening Commercial Aerospace aftermarket, strong Defense product portfolio, signs of a recovery in U.S. non-residential construction, and stabilization in Europe. Price target raised to $138 from $123.
Got gold?...Don't feel too bad, I sold some BAC earlier today at a profit, but, then watched BAC continue to rise UTX is sitting out today's 100 point rally........Kid
Speaking of Guiness (sp), I heard another rumor that Louie wants to break the Guiness world record for highest compensation ever, anywhere by a CEO! Get ready for more layoffs!
Yea we got a 0.35 % profy sharing check ( $260 - @ 70 K a year ) while he cashed out 40 million in stock options - american business model pay workers less , lay off thousands and than give the company officers huge rewards
Sean...I'm OK with nest feathering, but, I would not recommend that Louie marry a Swedish countess less than half his age or spending $95,000 / week on a sailing yacht like George David did. Nor would I like it if Louie let his friends have use of the UTC corporate aircraft like GD did. I was at a bar in Banff, Alberta and was talking to a Swedish gentlemen who spoke very good English and Tiger Woods was about to get married to a hot Swedish chic. I told the Swede at the bar, the Swedish chic would separate Tiger from many millions. I said the same thing about George David, I was right both times. Beware of hot Swedish chics.................Kid
Rumor has it that Louie C is going to take all his 2013 income and give it up because of all the layoffs last year. My sources told me that he has requested it be divided up among all the people laid off because he feels guilty taking so much payment while so many former UTC employees lost their jobs and may not be able to make ends meet. He is also recommending to his division presidents that they do the same.
Thank you, VWdiesel10. A very well thought out and written response. I'm not a technician, in stockmarket terms anyway, but always like to hear the technical analysis. My basis is WAY below $75, I'll hold. I'd do some trading in & out at a price below $100, I think. Don't expect to see that.
United Technologies Corp. Chief Executive Officer Louis R. Chênevert took home $24.68 million last year, an increase of 26 percent from 2012, according to federal filings.
Chênevert, 56, received a 4.4 percent increase in base salary to $1.76 million.
His bonus decreased slightly to $3.4 million, his long-term incentive pay was $679,376, and other forms of direct compensation came in at $575,056, a category that includes personal use of corporate aircraft, payments for leased vehicles, insurance premiums, and retirement plan contributions.
Chênevert gained $10.7 million in value from exercised options and $7.6 million from stock awards that vested.
The Courant calculates compensation as the sum of salary, bonus, value exercised from stock options and vested stock awards, plus other forms of direct pay, such as incentive payments and personal use of corporate aircraft.
The Hartford-based company also awarded Chênevert stock awards and options now valued at $9.07 million. The ultimate value of the options will depend on how well the company's stock performs, and the stock awards only vest if certain financial performance targets are met.
From Jan. 1 to Dec. 31 last year, United Technologies' stock increased 41 percent, during which time the Dow Jones Industrial Average rose 28 percent. Revenue increased 8.5 percent for the year, and net income rose about 9.7 percent.
The details were contained in United Technologies' proxy statement filed with the U.S. Securities and Exchange Commission on Friday in advance of a shareholder meeting in late April, where votes will be conducted on the election of directors, the company's executive compensation packages, auditor approval and other proposals.
The filing also listed compensation for other key company executives:
—Gregory Hayes, chief financial officer, $20.02 million
—Geraud Darnis, chief executive of UTC Building & Industrial Systems, $13.63 million
—Alain Bellemare, chief executive of UTC Aerospace & Propulsion Systems, $6.29 million
—David Hess, former president of Pratt & Whitney who retired in January, $10.77 million.
Copyright © 2014, The Hartford Courant
When I say that the company has cut guidance twice, I am referring to their early announcements that Q4 and now Q1 would come up light versus previous expectations. What is to say that won't continue for Q2 and Q3, putting increased pressure on Q4 to make up the difference.
It could very well be a stop along the way to $105 if we move to test the range around the 200 averages. The 100's are just shy of $112. Currently, the Williams %R is oversold, and the RSI is oversold. The MACD, however, has only just crossed below the trend line. On previous sell offs, when the lines cross they usually continue downward until the move bottoms around a moving average. I would venture that if we do not get a significant move higher that also pulls the MACD back to projecting upward trajection, we could very easily continue down to the lower averages.
The fundamentals would support a case for a lower price as well. UTX came out and reaffirmed 2014 guidance, with an expected hit to Q1. Now, based on the short-term guidance for 2014, we are looking at somewhere between 5-6% EPS growth off of 2013. You have a stock trading at roughly 17-18x earnings with 5-6% short-term growth that has now TWICE cut guidance. I do not see a justification for that high of a multiple until the company proves that this is a minor hiccup as global economics are shifting due to China demand (where UTX has huge business opportunities for Otis and Carrier, etc.). If 2014 guidance holds, and we trade down to the $105 level, you have a stock trading at roughly 16x (105 divided by the 6.55 low end estimate for the year). I am more comfortable with 16 and below than I am with 17-18x. A P/E of 16 takes out great deal of premium for perfect execution. When compared to other industrial names operating in similar fields (Honeywell), UTX does not have growth high enough to support a premium multiple AT THIS TIME. If, however, management gets ahead of these headwinds and is able to boost sales, and thus the bottom line, and build future growth expectations, then a return to 17-18 would be not only justifiable but warranted.
Keep your core position. Trade around that with options to raise capital to buy more stock on the deep dips. Solid company, but the stock is high.