OK – so we are on final approach to earnings on the 19th. Stock at all-time high going into the final 8 business days to earnings. Have been buying the dips. Potential party poopers are the Fed’s minutes on the 10th, usual unemployment numbers and retail sales on the 15th. Earnings play use to be easier when UTX went ahead of HON and you could take some off table on UTX earnings sympathy move. Companies making margin numbers on cost reductions instead of growing top line – can’t go on forever and once they squeeze all the blood out of the stone, will need top line growth. Second half forecasts could drive stocks as markets expecting improvements in economy that are probably already priced-in to current valuations. If too many talk-down year end numbers, could have market rout.
my 2 cents, gasman
Great points...I couldn't agree more!!! If Honeywell can show some top line growth this stock will continue to soar. They are very conservative, which has always been Dave's approach, but they are squeezing so tight and dragging their feet on filling open positions I am concerned that they are going to get diminishing returns. I'm sure that Dave knows what he is doing, but at some point they are going to have to pay attention to top line growth. There are companies out there that are growing top line and improving profitability, so it can be done in this market.