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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: NikhilJog who wrote (44387)	9/16/2011 8:17:17 PM
From: snookcity	Read Replies (1) \| Respond to of 78644

I thought it was COL they were interested in buying.

To: NikhilJog who wrote (44387)	9/16/2011 8:35:25 PM
From: E_K_S	Read Replies (1) \| Respond to of 78644

Hi NikhilJog - From what I read they are looking at something in the $20B range. Some of the analysts suggested that it would be a company that would complement their Jet engine and/or military division(s) as they see a cut back in military/Gov spending and want something to replace that cash flow. So I suspect that an acquisition would sell into the public sector (non military) but use some of the manufacturing processes from their current military driven businesses. Goodrich Corp. (GR) would provide a lot of synergies especially if they could build a subsidiary that manufactures and services the public airliner sector. Specifically, I am thinking Boeing and that new $1T contract they landed with UAL for the new 737 aircraft. It appears that it will be no value buy and they may end up paying a large premium to do such a deal. EKS

To: NikhilJog who wrote (44387)	9/16/2011 11:44:00 PM
From: Paul Senior	Read Replies (3) \| Respond to of 78644

"I had suggested ROC as a buy around USD 30 a long while ago." Rockwell Collins (COL)? Rockwood Holdings (ROC)? I don't see where where you had suggested either of them here a while ago..

To: NikhilJog who wrote (44387)	9/17/2011 3:03:28 PM
From: Paul Senior	Respond to of 78644

Going through these stocks again, Rockwell (COL) does seem undervalued if I look at where the stock is now compared to where its numbers --p/bk, p/e, p/sales have been previously. OTOH, all or almost all these stocks seem somewhat undervalued on these historical numbers. Of course it's possible I'm giving too much importance to these past numbers. You may be right in that the way you may evaluate COL and the others, that COL is the best among the group. COL's a specialized business (avionics primarily), so I'll be waiting to see if the USA government will ever come closer to actually providing funds to upgrade our obsolete airports. Maybe then I can get more interested in Rockwell (presuming I can catch the stock before it moves up in anticipation of the government actions). For whatever reason, COL's stock has already recently moved up from lows, and in this volatile market, I'm just very reluctant to step up for stocks off their lows. It looks from the news this morning that you will be correct about GR being UTX's target. I've looked at UTX again, I see now competitor HON. I've liked HON stock in past; I was a contractor at Allied Signal which was later acquired by HON, and I like how Allied Signal operated. I like HON because of its diverse operations. honeywell.com If Yahoo average of analysts' estimates were to be correct --- 10.6x for 2012, that would make HON a buy in my opinion. For me otoh, I already have UTX, and based on stock performance, there's not much difference between the two companies' stock performance during the last five years: finance.yahoo.com And dividend yields are about the same too. So I might just stick with UTX.