Textron, Inc. (TXT)
A global multi-industry company with operations in four business segments: Bell, Cessna, Industrial and Finance.
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Currently, what Textron does best is building Cessna Aircraft's business jets. Cessna's business is up to $12 billion and considering the airline security woes, a greater share of the business jet market is available to Cessna. Those individuals and companies that are willing to purchase or charter privately owned business jets will add to the market for private aircraft.
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Textron made a change last year and since has been on a consistant climb. The aviation section has been making up for the losses they experienced a few years ago, and with the new government contracts they have plenty of room to climb. I expect them to beat the 52 week high in the near future.
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KIP
This is a no brainer. The are responsible for all those Cessna plans. Cessna is sold out for 2007 and is already heavily booked for 2008. It's helicopter operations are very strong as well.
P/E ratio is a tad high, but with the demand for its products i see the company producing very favorable earnings.
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Textron has a couple things going for it, but two very serious risk factors. The U.S. gov't stated that it will allow for use of "intelligent" land mine systems. Textron develops just such a system, are far less dangerous for noncombatants than conventional mines, and can be taken offline or permanently disabled at any time by the owner, so after a conflict is over they can be rendered harmless. So not only will Textron be allowed to keep this revenue stream, the gov't has essentially indicated they will be relying in this technology moving forward. Second, the war will continue, and additional vehicles will be needed, and newer technologies will be needed to combat newer attacks from insurgents. This company does great R&D.
Risk factors include the upcoming change in presidency, and this can mean a change in investor perception as well as a change in policy. IFPs are a huge problem for the armored btr/asv's that are being purchased to replace the weaker humvees supplied by competitors. The insurgents are now using roadside bombs packed in pipes or tubes that force a chunk of metal through a small opening, and the super heated metal essentially becomes a solid metal bullet as it passes through the opening and can rip through even the thick metal of these six wheeled hulks, which could spell the end of their use in the not too distant future. Such a decision would most certainly cut the revenue for a company like Textron.
Make sure you take a look at each branch of this company before you plunk down your cash. Extremely well managed but each division has its own unique challenges.
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Goldman Sachs says "buy" but since they own shares that really means "buy our shares".
http://www.zerohedge.com/article/textrons-conviction-buy-list-kiss-goldman-sachs
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Has the potential to crush earnings estimates now and in the future. Operates successfully in several divisions and will probably win the military's next contract on up-armored humvee's. This could add a second major streamline of income outside of the fact that Cessna eng. orders are booked solid thru 2008. Even if they dont win all military spending for new armored vehicles they still are well valued at this point. I think its beat the index by a little/ beat the index by a ton.
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I feel the financial portion of this stock is keeping it down, but it was only 7% of revenue in 2007. 67% of the revenue was from Bell and Cessna and the rest from its industrial segment. As the military keeps spending on defense, Textron should benefit.
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It's video meetings, and live web - airplanes are a hassle since 911
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Obama capped the executive compensation at $500K. I think that will cut back a lot of luxury spendings for CEOs.
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The aerospace industry has been forcasted to remain strong throughout 2012, with Cessna and Bell's sales leading within their respective markets it will continue to drive Texton earnings upward. Also, the outlook within the Middle East and North Korea will keep defense spending flowing to Textron Systems.
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Worth $10.50 per upcoming stock issue
Worth $9.79 per Book Value
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'Haven't researched this much. I looked at the four industries this multi-industry outfit was in, and I didn't like any of them. They are definitely swimming upstream.
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Cyclicals have run too hard, and the real demand is not there to support them.
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Deal with Army may go sour
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Employees will tell you that Bell manufacturing is stuck in the 1950s. Changing CEOs (several times over the last few years) coupled with their employee unfriendly and union busting tactics, won't fix those kinds of problems. Taxpayer dollars, tax breaks and politics is all that keeps that part of the company going.
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Multi Company diversified
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wish i got to it sooner potential to make you money
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at $9.00 it "shouldn't be going too much lower!
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diversified company, would like to see cessna and lycoming spun off of TXT, those 2 are losing businesses

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