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Goldman Conviction Buy And Cessna Maker Textron Announces $1.7 Billion Loss In Backlog
On September 2 Goldman upgraded Textron to Conviction Buy ($23 PT) and provided the following catalysts as key items to keep an eye on:
A
year ago, each of Textron’s businesses were going the wrong way:
Corporate profits and the Industrial economy were rolling over, which
had negative implications for Cessna and Industrial, Financials were
facing severe challenges which had negative implications for TFC, and a
leadership change was about to take place in Washington with negative
implications for Defense and therefore Bell and Systems. Today,
we see the exact opposite occurring.
Unfortunately for Goldman's pie in the sky/conviction buy thesis what we really are seeing today is the opposite of the opposite, which comes to us via the following press release from Textron:
The company has
been in discussions with a large customer concerning the cancellation of
about $1.1 billion of jets it had on order with Cessna.
Will we see some more conviction buying from Goldman on this news? Or has it been largely "priced in?" More from the PR:
The company expects that cancellations in the fourth quarter will reduce
backlog by a total of approximately $1.7 billion. These cancellations
are not expected to have a material impact on planned deliveries through
2012.
Three days ago Goldman portfolio company Hawker announced that its backlog plunged by 40% after NetJets announced it had cut 90% of its backlog. We wondered whether this action would end Textron's presence on the "Prop Trading Conviction Sell list, aka Outside Idiot Clients Conviction Buy list" - it did not. Yet if today's news somehow does not filter to Goldman private jet cheerleader Noah Poponak, we will be firmly convinced that Double Wide Chinese Walls (the kind that keeps any information out of the research department) at Goldman are truly unassailable by the retail/institutional investor hordes.
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Fortunately for the GA community, many banks have paid back their TARP funds and can now upgrade their fleet.
That's funny.
However, they do have bac and cof on their CONviction buy list...talk about 2 gems propped up by ridiculous FASB 157 nonsense.
oh, and about those off balance sheets items per FASB 166/167....
Iran invades Iraq. Somebody order a black swan?
http://www.bloomberg.com/apps/news?pid=20601087&sid=a3lUUctgSWI4&pos=8
Probably the incident will not escalate, but it is troubling to say the least
Yes as Marla has said. When Lloyd says buy Webistics, you fucking BUY Webistics!
I doubt very much that Iranian troops can enter Iraq,which is a defacto american protectorate,without the tacit agreement of the USA. I am not sure how far that oilfield is from the Majnoon oilfield,one of the biggest known oil reserve in Iraq,but during the eight year war with Iran,many of the Iranian penetration trials would come through that sector.And just before the end of the war,Iraq had to fight a verocious battle to secure the Majnoon oilfields.
Iran obviously can cross the desert whenever they please, and apparently it pleased them now to do it. What the hell are they thinking is anybody's guess. The province of the Majnoon oilfield is Shite dominated. You are correct some of the heaviest fighting in the Iran-Iraq war took place there.
Could be just a small statement or could be the sign of something more important. We wil have to see what happens.
Agreement? I think they were blindsided by this.
any chance these orders came from an unnamed emirate in the middle east or is/was that one only interested in the A380?
GS manipulation masquerading as "opinion". Just as long as there aren't any pesky incriminating memos, e-mails or other such bloody trails lying around, the pump can continue, particularly when the "regulators" are muzzled and leashed.
hmmm..time to huddle up.
No biggie. The government probably already got their boost to durable goods orders over the past several months from these cancelled planes. Nothing to see here.
Soooooo, do I read this that Goldman is cancelling an order of Executive Jets? Hmmmmmmm?
Watch for the official Goldman garbage disposal, Jimbo Crammer, to be shilling this puppy any day now as the GS prop desk parachutes quietly out the escape hatch.
Kill textron. Kill it with fire.
Fraud, Ponzi Scheme...
Fraud, Ponzi Scheme...
Fraud, Ponzi Scheme...
We all wonder when this idiocy, manipulation, and blatant corruption will end? We'll tell you -- when the system IMPLODES (taking all the politicians with it, who by the way, we are repeatedly told by our friend connected to the Obama administration, are quote "scared shitless"). Rightly so we presume.