From the first week and a half of filing season, we’re highlighting two of the firms with economic earnings going the opposite direction of reported profits.
Simply put, the price UTX will pay for this acquisition – which comes to ~$33 billion when accounting for all forms of debt and unfunded pension liabilities – makes it almost impossible for the deal to create long-term value for shareholders.
The Dow Jones Industrial Average has a deserved reputation of only housing the best-of-the-best blue chip stocks. Only the oldest, largest, and most profitable companies are included in the index,
The Industrials sector ranks fourth out of the ten sectors as detailed in my sector rankings for ETFs and mutual funds. It gets my Neutral rating, which is based on an aggregation of the ratings of 16 ETFs and 18 mutual funds in the Industrials sector as of October 9, 2012.