Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, September 23, 2011

Article Excerpt

UNITED TECHNOLOGIES CORP., $68.92, New York symbol UTX, is buying Goodrich Corp. (New York symbol GR). This North Carolina-based company makes a wide range of aircraft parts, including landing gear, wheels and brakes. It also maintains and repairs planes. United Technologies is paying $18.4 billion for Goodrich, including assuming $1.9 billion of the company’s debt. On June 30, 2011, United Technologies held cash of $5.4 billion, or $5.94 a share, so it will likely borrow the rest of the money it needs to buy Goodrich. Still, United Technologies can comfortably afford to take on more debt: its long-term debt of $9.5 billion is a low 15% of its $62.6-billion market cap. It also plans to raise $4.2 billion by selling shares. Goodrich looks like a good fit with United Technologies’ other aerospace businesses, which include Pratt & Whitney aircraft engines; Hamilton Sundstrand aircraft controls; and Sikorsky helicopters. Goodrich will add $8 billion to United Technologies’ annual revenue of $58 billion. As well,…