United Technologies (UTX)

The stock came off because they announced the split in three parts ( Aerospace, Otis Elevators and Chubb and Carrier Division) but it will take up to 18 months to wait until a recent acquisition closes. All three business are great with recurring revenue streams. But the spinoff is an overhang on the stock. You will be paid to hold here.

(A Top Pick August 24/17, Up 19%) Still likes the name, but wanted to protect the portfolio. An 11-12% growth rate, decent dividend, diversified. Sold it to buy healthcare names. Want to own this mid-cycle. If we still have a couple of years of growth, and if trade concerns start to abate, names like this and Honeywell will do well.

(A Top Pick September 12, 2017. Up 24%). This is a large US industrial company with 4 divisions. Pratt Whitney makes the engines for several types of aircraft. They are ramping up on a new engine and probably have the manufacturing problems behind them. They also own Otis Elevator, an Aerospace division and a division that makes climate controls. They are well-positioned for increased urbanization and for air travel. They have a recurring revenue stream from the service contract attached to their original equipment contract. Recurring revenue accounts for 40 to 45% of their overall revenue, making the business less cyclical than other industrials. They are growing through another acquisition (Rockwell Collins) and have raised their guidance in the first and second quarter. She sees this as a high-quality large-cap industrial company.

A high quality global industrial company. They have 4 divisions. They make engines for planes. The original equipment is purchased from them and then they continue to generate a revenue stream from servicing the equipment. A high quality company. (Analysts’ price target is $152.18)

He used to own it. A great industrial company involved in airplane parts, Otis Elevators and Carrier air conditioners. UTX has centered their technology on the gear turbo fan, an improvement on airplane jet engines with 10% more fuel efficiency, but it's a more complex engine. UTX had issues manufacturing some of the parts. This slowed them down. They have since solved them, so they shoud be on a roll. He likes this stock and may look into it.