Thursday, August 31, 2017

United Technology Looks To Buy Rockwell Collins

It wasn't that long ago I pointed out Rockwell Collins(COL) as an interesting company with a stellar performance record. I love doing columns like that, and frankly I need to do more of them.  The company was on my watch list to possibly add in 2018.  That hasn't changed until this supposed deal with United Technology(UTX) is consummated.

Of course seasoned investors know a deal can fall thru for any variety of reasons.  But for now it seems United Technology is considering making an offer around $140/share.  That would value the company at approximately $21 billion. That's a decent premium from where the stock was trading at the beginning of August when it started it's current breakout. If you were lucky enough to buy on August 1st you are potentially sitting on a 29% gain in just one month. That's pretty solid by just about any standard.

Here is a chart depicting the performance of both companies since January 2002.  Rockwell Collins is smashing the already stellar returns of United Technology with a 727% gain during that time compared to United Technology's equally earth shattering gain of 401%.  No wonder why shares of UTX are up on the move. Investors already see how great of an addition this could be for the company.



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