Stock Ideas 
Stock Ideas Investors Daily Edge Ride or Slide: United Technologies (UTX)
Stock Ideas Investors Daily Edge Ride or Slide: United Technologies (UTX) 
Market Watch
|
John Myers. As editor and publisher of the top-rated private advisory, SECRET STOCKS, I've been making individual investors rich for over two decades. Now I'd like to make you rich. |
|
| More... |
Most Popular
Login Form
| Ride or Slide: United Technologies (UTX) |
| Friday, 04 July 2008 | ||||||||
|
Once upon a time, the defense sector was the place to have your money. From wars in Iraq and Afghanistan, the U.S. was spending tons. Is the party over? That’s what our reader Paul was wondering when he asked… Subject: UTX United Aircraft? Hi Charles, Shares are down perhaps because of building slump dropping HVAC and elevator backlog? This seems to be a well-managed company. Jet engines doing well (Pratt-Whitney) and more efficient ones will go into the newer lightweight composite fuel efficient jobs the survivors will have to be flying to be competitive. Whatcha think? Paul The whole sector is being downgraded. It explains why United Technologies (UTX) is suffering. The scariest part… airlines should reduce their orders in the next two years as they cut costs to cope with higher oil prices. Just when you thought things were at their worst, now investors are worrying about the election. Obama wants to pull troops from Iraq, which would mean less defense spending. McCain isn’t in a hurry to pull troops out, which means a continuation of defense spending. That’s a huge uncertainty that won’t be fully resolved until after the election in November. Technically, the company is a falling knife. Well, that is unless you look at their weekly chart. They are sitting just above their 200-week moving average. While this may look tempting as a buy, when you look back, you’ll notice the last time they hit their 200-week average, they still fell under it. In other words, there’s no real pattern of their 200-week acting as support. The last thing you should do is buy because your hoping a pattern emerges. While I believe the sell-off in this company is overdone (and we may see a bounce), this stock probably won’t perform until after the November election.
Let United Technologies (UTX) slide.
This investment news is brought to you by Investor's Daily Edge. Investor's Daily Edge is a free daily investment newsletter that is delivered by email before the market opens. It's published by Fourth Avenue Financial, a subsidiary of Early To Rise (an affiliate company of Agora Publishing). In each weekday issue you'll receive practical strategies for protecting your portfolio and multiplying your money. You'll also learn about undiscovered opportunities in emerging sectors and markets, deeply discounted stocks, recommendations for bonds, cash, commodity and real estate investing, and top ETFs. To view archives or subscribe, visit Investor's Daily Edge .
|
||||||||
| < Prev | Next > |
|---|
