Sellers and shorts taking control for a day and this market action is healthy. There are a few technical support levels at 29.87, 29.71, 29.40, 28.89. TXT price has to test these levels before we go up big on earnings. Cypress has nothing to do with Textron business and it gives a great buying opportunity to those who believe in macroeconomic improvement, defense replenishment, aviation sector improvement, winding down of Textron's non-captive finance obligations, and potential dividend increase in sight.
I had made the mistake of getting out a month ago and got back with 2000 shares a week ago and today added another 5000 shares today. Economy is in great shape, businesses have started hiring, home sales and consumer spending are up, up, and away and consumer confidence is better. Cypress action will bring more money to US and its good for US markets. Hang on to your shares or you will look back and #$%$ squeezed out when it is double the price in a couple of years.
Hey Queenie, you are right about economy and housing. My neighborhood sees any decent home go on pending or option in 2 days. People are feeling better about their jobs and pockets. I aint selling my TXT shares till someone shells out $60+. JP Mogran analyst comments- who teaches these guys english? TXT is vulnerable to what? Shouldn't they back up their research or assertions with logic or facts. Probably an analysts that wanted to move he stock down to support their JPMs short position or get TXT cheap for a wealthy client ahead of the earnings. SEC should keep an eye on these guys moves. Dont care either way. Cant keep TXT down because CEO is on record for earnings visibility plus a bunch of more good orders since then. I say TXT hits $35 after earnings. Watch it roar back up tomorrow.
I guess the home price report this morning pretty much confirms what the consumers and investors are feeling.
As for Textron, dont worry, last time on March 8, 2010, when JP Morgan downgraded this stock from overweight to neutral, the stock went up 7% in a month after immediate drop. With due respect to this and the other analysts, its the nature of their business. They make best judgement and do what is in the best interest of their companies and clients. In this case, though, Textron already raised the guidance last quarter (see Jan 23rd news) partly because of Cessna sales forecast in 2013 is higher than 2012. It is alsi well known and widely discussed that Textron has minimal, if any, impact from defense spending cuts. So the notion of flagging that risk at this stage when the stock just broke-out past the recent resistance in $28-29 range, likely implies that someone is trying to get this stock to be a bit cheaper ahead of earnings so their clients or brokerage firm can load up. Its interesting that no name is available for the JP Morgan analyst in the news reports so this could all be a hoax of short sellers. This stock is headed higher.