I'm not an aircraft or engine person, but it SEEMS to me that gearing is something Pratt has done for years (helicopter rotors run off of gear boxes, as do many other accessory items on the main engine). I presume that the GTF gearing is super precise and super robust by aircraft standards (we aren't building steam turbines after all). I'll also presume that the testing for the gearboxes is way down the life-cycle with more than enough data to have good L-10 and MTBF data. Now I could be wrong, in which case, OUCH is an understatement. But I'm also presuming that Pratt & UTC are mature enough to have worked through the various fault trees and test protocols such that the surprises will be little ones. We may be 10 years to know the full story; if it takes that long we are successful!
Seems to me (and I'm not an analyst) that if the combination is worth $145 and the split is worth $145, the only value created is for the investment bankers who will pocket millions in fees for such a transaction. The benefit of a mixed portfolio of assets ALA UTX is that when one segment is slower another might be pouring out cash. Who funded the Pure Power R&D, for example? It wasn't all P&W; I'm sure.
I think you're missing the larger picture here, CW. On most or all of the February transastions listed as insider activity, there is a Buy & a cooresponding Sell to exercise options. You have an option for 500 shares, for example, and you buy the 500 and immediately sell 250 to pay for the shares you've purchased. The actual ratio of sell to buy varies with the option vesting price and the current market, of course; it is rarely two for one. These transactions were perfectly normal, I think.
We all know that a split simply cuts the same pie into smaller slices, I presume. 100 shares with a $3/share annual dividend turns into 200 shares with a $1.50/share annual dividend (assuming a 2:1 split). They are fun, but splits don't add any real shareholder value. One might even argue that splits increase the eventual cost of liquidating a holding, as you're trading more shares on that sale and likely paying a higher total commission.
I do agree that splits are fun.
Even more interesting in Euro-land is what will Greece get away with, followed by Spain and Italy and likely anyone else being strangled by austerity. We may see Dollar - Euro parity or more, before it is done.
Airborne, you must still be holding a grudge at W's mismanagement of everything. In the last six years, the national deficit is cut more than in half, the stock market (even with the last week's bad performance) is more than doubled, gas is at $2/galllon and we are effectively OUT of W's foolish foreign entanglements. You should have far more than simply change in your pocket unless you're less astute than you lead us to believe.
Biker, to each their own! In 2013, I made 41.x% (forgot the decimal) overall on my total portfolio. In 2014, I made 9.x% (where x is either .2 or .3). Ok. not so great, but not bad either. Somewhat over 40% is in fixed income investments, including the stable value fund. I should have rebalanced last week, but I was enjoying the holidays in Europe. OK, still time to do so. Mostly I buy & hold, but I do move into and out of UTX and other stocks when the mood strikes me. You're comfortable at 3+%; when I retire I hope I can be comfortable at 3 or 4% of my portfolio. We'll see. Happy New Year to you, and to all on the board.
CW, you keep on trying, but so far, unsuccessfully. I do hope your string continues, unabated. (note to BIK: Yeah, I know "hope" doesn't buy groceries) ;)
GE, for me (basis cost under $15) is paying a nice steady dividend. I'll hold it. UTX is less attractive from a div-yield point of view, but what I've got I'll hold for now too. Happy & we hope Profitable New Year to all.
Try this link to UTX monthly close: https://finance.yahoo.com/q/hp?s=UTX&a=00&b=2&c=1970&d=11&e=26&f=2014&g=m&z=66&y=0
You'll see dividends paid, and splits too, as notes in between the monthly close numbers. You'll have to go back a screen or two to see the last split, I think, but can develip a historical perspective easily enough.