Now, more than ever, it is clear that TXT is suffocating in rotten conglomerate deadwood ... it is time for the giant termite on I95 to go up the street and gobble the useless value-destroyers before the job is done by outsiders ... with an abysmal price of $25 any warm-blooded raider can simply "pre-sell" Cessna (say, to the Chinese) and the basket of low-food-chain industrial stuff and bid $35-40 which will be snapped up by mega-frustrated shareholders and they get Bell and Systems for an obscene bargain ...
BUT ... there is still time for a controlled scenario to unlock value:
Following the Tyco model, spin-off:
Smart Military Systems
The aggregate value easily will top $45-50 ...
Whether done on a friendly or unfriendly basis, the massive corporate/conglomerate wet blanket must be removed ...
Asked my dad whether TXT is still a good investment. My man's confidence is unshaken. He says Bell was always like this. Some worked hard, others just chatted in the hallways, management was disconnected and had no clues but these companies were always delivering just enough to keep in the fold. He and his buddies always wondered why they needed the parent company as a burden and still thinks they need to breakup Textron to 4 companies to unoock value and get rid of huge corporate expenses. You are correct, Mr LuPune and can probably run the company better than these bozos running it now. Keep up the good work o kep us educated and press the TXT mgt to unlock value.
Pretty bad report given Textron upped the guidance earlier only to lower it yesterday. Otherwise, it looked acceptable. But Bell and industrials lacked growth. ERP system fix hopefully brings back common sense that they focus on high-margin spares over normal production deliveries.
Report showed the impact of both corporate overhead as we as inefficiencies in individual units. Presentation had no mention of non-captive finance liquidations. They need to do what you said to unlock value because cutting experienced and expensive workers alone won't do it when management strategies and deadwood and improperly prioritized spending continues. Time to spin-off individual units to let them grow and run like businesses.
You are so right ... note corp exp up 30% last year ... useless/valueless overhead ... if units were spun-off it would not be missed ... look at the layers: staff, analyst, coordinating analyst, manager, senior manager, associate director, director, executive director, associate vp, vp, senior vp, executive vp, senior executive vp, president, ceo ... "I spent the last three months analyzing what they do and I still don't know" - G. Gekko