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Strategies & Market Trends : Value Investing

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Ditchdigger
From: Paul Senior7/25/2023 1:37:50 PM
1 Recommendation  Read Replies (3) of 78954
 
OT: RTX. Down sharply on news of a quality problem and expensive fix for it.

From WSJ:

“It’s going to be expensive,” Chief Executive Greg Hayes said Tuesday on an investor call. He said it was too early to determine the final cost. RTX said it was not a flight-safety issue.The inspection of an initial 200 engines over the next several weeks is expected to reduce RTX’s free cash flow by $500 million this year. An additional 1,000 engines will also need to be inspected over the next year to check for any issue with the metal made by RTX from 2015 to 2020.
I've held a few Raytheon shares for many years. I'm assuming the company's current problem with their engines will be fixed and the stock will recover from current price. Stock is not now, and has not been, a value stock (imo). With governments spending on defense, and demand for planes from airlines, I believe I can see a line of sight to assume that RTX's good business prospects are still intact.

I'm adding a few shares @$84-85 to my position.

finance.yahoo.com
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