Danger Zone: Textron, Inc. (TXT)

From non-GAAP accounting to costly acquisitions, it is not difficult for a company to create the illusion of profits. However, eventually reality sets in and the deterioration of a business comes to light. This week’s Danger Zone pick, Textron Inc. (TXT: $42/share), is destroying shareholder value while covering it up with an acquisition that creates the illusion of profits via GAAP net income growth.
by Kyle Guske II, Senior Investment Analyst, MBA