Rex - I left the eggnog out and drank all brandy.
It's been another good year. Gotta make it while the making is good because eventually will lose some off the top at the beginning of the next recession. Hope we have a repeat next year but may get roughed up in the middle of the year.
Everyone have a great Holiday.
For Upright, From Santa
Twas the night before Christmas and Honeywell still not split when up on the roof there arose such a clatter, I jumped out of bed to see what’s the matter. When what to my bloodshot eyes should appear but a brilliant CEO so smart and so quick I knew in a moment that Cote must be Saint Nick. Then Cote held his hand out with an Investor Relations Release “A STOCK SPLIT FOR ALL AND TO ALL A GOOD NIGHT”. "Now Bossidy, now Bonsignore, now Agee, now Burnham, now Hennessy, now Mosher, now Honeywell, now Bendix, over these walls, over these walls or I ’ll cut off your . . . . . "
upright - I thought that Cote guided down next years revenue and profit by a little. I am thinking that what he did was to account for loss of revenue due to oil industry cutbacks (UOP, Process Controls). That leaves HON in position to then profit from the overall economy benefit of low oil prices in their other businesses such as Aerospace, Transportation, Home controls etc. Also, currently, the low price of oil is resulting in most countries increasing their output in an attempt to make up for lost revenue. Of course this spiral will have and end, probably around $40 a barrel when the Saudi's cry uncle.
Rex - did you leave out a "not" in your statement?
If I were the Fed, I would ease into changing their statement by replacing two words "low for an extended time" to "low for some time". Heck, they could increase rates from .25% TO .5% and the rates would still be at historical lows. Yes, there would be a negative market reaction but only for a short term day or two in my opinion. Also, the fact the that the Fed is raising rates could be interpreted as a vote of confidence in the direction of the economy. However, I see it more as a need to "reload" so that will at least have a card to play at the start of the next recession.
I guess it now appropriate to ask if the current crash in oil is forecasting the beginning of the next recession?
The other way to look at this is that the slide in oil prices came earlier enough to actually help the economy by putting extra cash is peoples pockets. Either way, markets like stability and we are far from being stable at this point.
Don't be surprised if there is a sell-off of some parts and a merger of equals with another big industrial who's CEO will run the new conglomerate. There would be no share premium paid, just re-balancing.
Upright - it is usually SOP when exercising company granted options to buy the shares at the option price and at the same time, sell enough of the shares at market price so that the profit covers the option price and the tax. The net result is that shares you end up with didn't cost you anything and you add them to your "stockpile". The timing could be questionable but then again, the options could have been expiring.
#$%$ little late for the dividend. Today is Ex-dividend day and the stock is sold today minus the dividend.
HON has under-performed the DOW by 6% and the S&P by 4% YTD. Could mean that there is room to grow and close the gap. Don't want to close the gap on the way down.
If HON does the high end of 2014 earnings estimates, stock could be over 100 at current PE of 18.
Been a nice ride up from around 86 to 96. Markets climbing wall of worry. Best time of year for markets ahead of us but still fear the unknown. Some profit taking here may be warranted. Dividend coming up in two weeks so looking for a dip between now and then to take advantage.
Oh no. I didn't get the memo now that I am an outsider. Insiders always seem to have a unique ability to pick stock highs and avoid stock slides.
HON may be overacting to record oil lows today on potential impact to UOP. Sometimes good news is bad news.
So much has come out of the stock that it could even go up on poor earnings although I wouldn't bet on that. Revs should show growth but not hit forecasts and may be a problem area but they use to get forgiveness as long as they beat profit. Profit will most likely still be double digit improvement from year ago. I may buy more if Friday is bad day but hope Zachs is wrong!
Rex - I do share your concerns. Didn't bet the whole farm yet and can still double up at some point but may wait until earnings release.
Funny - when the rest of the European Union wanted stimulus, Germany took the austere stand and forced them to tighten-up. Now they too are paying the price. Seems every way we look there are problems.
No longer funny - touched the 87 mark this morning. HON not being singled out but is in middle of pack of industrials that are tanking. Lucky I moved half HON into Bonds at 96.50. Managed to resist temptation to re-load HON but very tempting at these levels. Like rude said - next driver is going to be earnings and upcoming Fed meeting. China becoming problem with slow growth and high leverage.