United Technologies (UTX)

He likes the industrial space. This falls within his theme of owning cyclical names. This is a good name to own. Trading at 15X earnings with a 10% growth rate. You get a 2% yield, which will probably be pretty secure. If the economy continues to recover, this is a type of name you want to own.

Has underperformed because they‘ve had a couple of missteps. A couple of Pratt & Whitney engines had trouble getting into production. Also had some margin contraction. They are in the consumer market with Otis and Carrier and the emerging market in China, which is starting to slow. Trades at a 12%-13% discount to the group, and longer-term he expects it is going to grow as fast as or faster than the group. CEO abruptly retired this morning and he has a tough time think it is anything good, so is watching for news.

United Technologies (UTX-N) or Honeywell (HON-N) for the long-term? 2 very good companies. This one is a global diversified industrial company. They have airplane engines for Pratt & Whitney as well as having the Otis Elevators. This gives you a very good, broad industrial, global exposure. There is a lot of room to go on this one.

(A Top Pick Oct 29/13. Up 4.34%.) A diversified global company. Share price has not performed well because of concerns about China’s growth slowing, which it has. Have a very strong presence there through Otis elevators. Well-positioned for the infrastructure spend that she sees going on in the emerging markets. Still likes the name and feels it is very reasonably priced. Yield is in excess of 2%. Sees this at $125 in 12 months.

Recent earnings report was very, very good. This is a diversified industrial and they own Lennox, Otis Elevators, Goodrich and Pratt & Whitney engines. Nicely diversified and well-managed. Trading at a reasonable multiple.

(A Top Pick Oct 29/13. Down 2.62%.) A lot of these global industrials have been hit pretty hard. North America is less than half its revenue. Have exposure in Europe and in China. Europe is weakening and there have been fears that they will see that part of their business decelerate. The order growth from China has slowed in the last quarter. Still likes this. Pays a dividend of over 2%. She would be a Buyer at this time.

It’s a good company, but it is made up of many parts. He prefers pure plays, but you won’t go wrong on this one. Reasonable balance sheet. 2.2%.

General Electric (GE-N) or United Technologies (UTX-N)? In terms of a structured business plan, this company is a little further ahead. They own Carrier, Otis and Pratt & Whitney. A few years ago they acquired Goodrich. Very good management team.

They are dominant in 4 or 5 of their businesses. Excellent management team. Good execution. They are participating in two megatrends. Urbanization of emerging markets. In the US we are seeing a pickup in commercial construction that usually follows the residential pickup. Pays a good dividend and increases it every year.

Likes it. As things pick up in manufacturing it will really benefit this stock. It looks really attractive.

General Electric (GE-N) or United Technologies (UTX-N)? This is well run and focuses on 3 major divisions; however he would tend to lean to General Electric as he thinks they are in the latter stages of transforming that company into a real growth vehicle again.

A good-quality industrial. Well diversified. They own Otis, Carrier, Pratt & Whitney and Goodrich. Just reported earnings, which were quite strong. It is not unusual for a stock like this, after it has moved well, to take a breather. That is not a bad thing.

When things are happening in the economy, things like this will do well. Trading at 15X forward earnings with a 10% long-term growth rate. You are not paying a lot, but the earnings will pick up. Pretty decent value here.

Good company and interesting at this level. Probably not a bad entry point. A multi-industrial with exposure to aerospace and non-residential construction. Great management team. Exceptional track record of M&A growth. Some people have been concerned about the elevator market in China. This company will continue to take share in the aftermarket service business of elevators.

For long-term investing are you better off with Raytheon (RTN-N) or United Technologies (UTX-N)? These both have the same kind of exposure with a lot of defence industry exposure. The problem with the defence industry is that has it has been either a feast or famine, and he wouldn’t know which one would get hurt most if a contract got cancelled.