[Music] hello hello hi there hi guys hi trade engineer i think i think we can't hear you hello can you hear me yes yes we can hear you now awesome all right okay great great i think my calm is very laggy today unfortunately um i'm still i'm still seeing the countdown but good good that you can hear me um yep so yeah i'm glad everyone is you know able to make it today you know for our live sharing yep um so yeah um so if you are not here live with us like do give us a like or a love right so that we know that you are here live with us and you know today is a very special day as well but today is father's day right so um hope everyone is you know enjoying their father's day so far like financial music how have you been you know um spending today you know the father's day today i'm very busy i've been working i've been working and my my dad has been walking as well everybody's working my brother's not uh not around so i guess um yeah you can leave it in your chat in the chat below or in the comments below like how did you guys actually spend your father's day so far like um you know you bring your brothers out for a good you know lunch or are you planning to bring him out for a dinner later or you're giving him a present right uh you know dude let us know right i'm so curious to know how everyone is celebrating their father's day so far right so for myself you know i just brought my dad out for a meal right um just a simple meal and that that's about it yeah all right thanks all right so today right today we are actually going to you know go back to our routine sharing of particular stock right and today we're actually going to share on this particular stock called veyton holdings or weighted technologies like rtx i do not know i pronounced it correctly but basically the ticker symbol is called rtx right you can see in the banner below right so you know um not sure if all you know which this what this company is doing um um but if not like you're just stay tuned and we shall you know um delve into the details for this particular stock right so for this stock you know um it had like most other u.s stocks right um it has corrected a fair bit right uh not too much right you actually only corrected by about 16 right for his all-time high right um but nevertheless yes we trace a bit right so you know um we thought it was a good opportunity like to talk about this stock right especially with the you know ukraine war going on and this being a defense company right you know there could be some you know catalyst this could be some um things that you can look forward to for this stock right so um so yeah we thought it was a good opportunity to actually share this talk with all you guys today right so um without further ado like maybe i'll just invite financial messy first to keep start the ball rolling right of this particular stock right financially you are you ready to share yes i am more than willing to share so hey hi hi luke hi luke thanks for joining us in today's session it's really very nice to see you around um if you guys are here with us live with us please do um give us a like so that we know that you are there with us and you are ready to actually hear our sharing right do give us a like some like some love so let me know that you love it and we will be more excited to actually do this more motivated to actually do this more on a weekly basis like but otherwise i'm kind of sensing like nobody give us some response like we are talking about ourselves yep so please do give us some like some love so that we know that you guys are here with us while doing that let me just share my screen oh wait uh press the wrong button drag screen yep so this is the one okay alright this is my screen app is is my screen up uh i'm trying to put it up with uh do you see up okay no problem uh no no no no yes i do okay so first and foremost because today i'm going to go a bit beyond the usual uh framework that you see that i normally present so i really have to give a disclaimer from the start of the session to say that any views or penis references or anything of any sort today that i'm going to share or the trade engineer is going to share is nothing more than our own personal point of view and our own strategy and it should never be seen as a financial recommendation or advice please do take note yeah because you have to do your own due diligence for we are always wrong every one of us has our own strategy and whatever we can share with you guys is only for your consideration please do not take it as a financial advice no no one guys no no all right and let me move on all right so i do i do love this page i i frequently i forgot to ask people to you know show us some love uh people put a slide there no please do show us some love in any instance if you have any comments or anything that you want to discuss please do feel free to type in the chat so that we know once you're right it's a personal point of view and we can actually do some sharing some more intimate sharing rather than the one-way traffic when we travel is always so boring if it's about one-week traffic just read a book or read online don't need people to do it live so please please um do participate and we would really love to hear from you as well alright so like love share this video so that we actually um yeah be more motivated to actually you know speak more with you guys so without further ado right before i start proper about the stock itself let us look at the market i always love to look at the market what is happening in the market right now there is a lot of various sentiments uh currently in the market a lot of people are talking about recession um we were wondering whether the the the fat increasing the interest rate height will actually benefit the economy is it really going to benefit the economy okay that's something for us to think about a lot of things is happening in the economy right now that i really really have to actually you know um really i don't know how to put it you know i really very i really want to tell you guys to really be safe you really need to take on the the safe spans first if your guys are in the market or thinking of entering the market never ever catch a falling mic never ever please guys hey hi niklas thanks for commenting right never ever catch up on that please guys right there's a lot of things that's happening in the market and a lot of people are talking about an impending recession okay um let me show you what's happening you see you see i just i just went to i just went to google i just type in recession and they're just a whole list of companies link of employees tesla shoppi coinbase is actually from singapore itself and and it's not a small company a lot of people actually invested in crypto.com i myself i was thinking of whether i want to have a crypto.com um metal credit card it looks so cool right hey it's it's a metallic credit card it's so it's so pretty i mean i i i love the card i was thinking whether i wanted to actually you know put in some money with them to actually get the card but i did not like thankfully um there are so many companies that are having recession right now are laying off um their employees right now and it's just a very simplistic you know um slide that i put up if you guys actually do google you can screw up the the whole list of companies that are currently um laying off employees let me just show you guys what other others are uh let me just stop share this this this page first and go to windows yeah let me just share another screen to show you guys how bad it is okay let me show you screen on trade engineer don't mind help me to share this screen is strange right there hello can you hear me uh hi yes i can let me share to this window yup yup um i'm sharing you do you see on the screen okay thank you so much so look at this this this particular webpage itself right i have no idea about the credential of this webpage i have no idea who who is who is actually at the back of this this webpage i do not know but just take a look at this this drastically says referencing okay notable 2022 u.s patently of intact itself look at look at this this this bar here this whole if that's true it's just so many companies currently in u.s that is
actually link of employees like you see paypal laying off netflix link of the room thing off there's just so many like like you know when there's a recession when there's a pending recession especially what is one thing that happens before a recession to really say it's recession is of course there's a recession of employees right um common sense so you see there's so many companies um undergoing like so many some companies laying off their employees and and what is happening in singapore right probably have not touched the the pit yet it's probably just a scriptural like you know how tesla is laying off it's it's it's manager in singapore or or how shoppi is actually laying off uh some of the employees uh in shoppers so it's just scrapping the the top we have not properly entered the session okay of which it is going to come up why is it going to come up very simple let me also show you this uh continue my my my slides uh treat engineers sorry though so disturb you don't mind right okay so back to this slider look at look at this like let me move on the next page this is the market sentiments for june itself june this year so the market is going down down and down it has actually broken the support line a very strong support line and it reaches the very first um strongest support at the bottom support line the i mean the second the second upper dotted line right so it's already reached and it's already broken through rather it is actually going to go further it really depends on next week why because you see right ever since the uh the fed actually announced a 75 base point interest rate hike the market rebounded no idea why um people think that the market rebounded saying that you know oh finally you know announce a confirmation no need to speculate and it might help the economy but does it really help the economy the next day after the interest rate height announcement the market vendor realization show us a very big huge red bar of which on friday itself the market is undecided is it going to go up is it going to go down so it's probably going to hover around the dotted the dotted line and whether it will if it really breaks through right it might reach the bottom dotted line even we do not know this is actually all speculation but what i'm trying to say right now is the market is very bearish yes already entered the the bare territory and it will go downwards there is no signs of reversal there is no news in the market that says that oh um the market is going to go better or anything nothing okay based on chart itself uh based on based on theory and based on chart itself it is very bearish all right so please guys know your due analysis i do do a due diligence manage your risk don't invest unnecessarily um big uh i mean don't don't don't don't go in unnecessarily um with a very cute exam that that that you might not be able to sleep at night that is very not recommended by recommended all right so what happened latest development right we see that interest rate height increased 75 base point so far until now in total right if you add up the previous interest rate right we have reached 1.75 already uh moving forward there should be another about three more that we are going to see this year some analysis has already predicted that it might go up to five four four percentage five percentage we do not know how does it translate to singapore singapore dollar is not directly packed to usd that's uh that's a thankful part but nevertheless right we want to know that what happened developments in the u.s actually indirectly also affects singapore all right that is uh that is um no brainer um so with us increasing the interest rate high right you can see that there's a lot of um different avenues in singapore that is also increasing our own interest rate already for example housing loan housing loan i think it used to when i was i mean i first started looking at houses and the loans um i think it was 1.2 there about increased to 1.6 1.8 the highest i know was actually two percent housing is going to increase car loans money loans what else is personal loans even even even in the in the finance world because i am i'm personally in the finance industry um the endowments are coming up higher interest rates why it's because of the fact if the fed announces higher interest rate this is how it's actually going to implicate singapore and if we are not prepared for it then that's when we are actually stuck into it right so so um yeah even if the increase in interest rate to 1.75 and moving forward they might
increase to four to five percent does it really help with the economy and it's very simple i would personally feel that it doesn't help because why yes you increase the interest rate everything gets more expensive the demand will decrease okay but no matter how much the demand will decrease the problem does not like the demand the problem like with the supply are we going to increase the supply if yes how are we going to increase the supply because there's a lot of things that's happening in the economy that has far beyond affected the supply demand chain right so even if we help with the demand the supply doesn't and used to increase the interest rate right it's not it's going to make big corporations you know um less willing to borrow money recession is going to come up because they don't want to borrow money the prospect is not there they are not going to spend more money in the economy and that is also where it actually promotes approach for a recession so no matter how you think you think that you think right no matter how you think it just leads you to one word which is it is inadvertable that a recession is coming up how badly i do not know honestly if i know i will be an economist i'm not an economist um i do not know how bad is the recession going to be to be in this time round but but you know previously right recessions have been our market cycle has been every 10 every 10 years and when is the last market cycle it's in back in 2008 lehman brothers crisis the financial crisis right it's been long due okay and don't forget if you look into the historical um history of the states right that u.s has been increasing that that year or year on year on year and and with the trend right increasing if you use a debt versus um the recession period you actually notice that increasing that will when it increases the debt right over the years the period of recession also increases as well so is it going to be longer than the previous one i cannot say for sure but based on historical based on um the the immensity of current situation highly likely the financial crisis took about seven to eight years till when they see actually the economy went back up to the peak um before the crisis this time around they are seven to eight years i do not know maybe a one to two years as well i do not know but for me my personal thing is going to be very long all right so please be safe out there do not um think that you know um do not rush into any investments to not rush into into resigning or anything please be safe this is not a time for you guys to um i don't know it's not a guy it's not a time for you guys to to be creative or or do something extreme yeah please be safe uh especially in this period of time it's very volatile and the volatility will only increase okay and not not to forget right there's also this ukraine russia war um it's been a long standing since february 24 and i no longer follow on the news but what i understand for now is it is still fighting they're still fighting and and the eu just back up uh ukraine even more and so um i have no idea what's going on but it's it doesn't doesn't show any signs that you will it will stop so please be prepared this is also partially why my my dad actually you know mentioned to me like hey since you are investing why not look at look into the defense um sector like you know when even when there's a recession right the the people are not earning much the economy is not doing as well but is there a possibility when the where the government would say hey everything is not doing well i don't invest so much in defense is it going to be that way no right especially with the ukraine russia what is not going to be that way because people will be looking into this how can we strengthen our our country such that it will not be i don't know conquered by other country or other countries will not take this opportunity to conquer us you know that kind of thing so people no matter recession or no recession no matter the economy upload a country will always invest in their defense they're very basic defense all right and that leads to us what are we expecting next week we're expecting to see what is the latest update in the course consumer sentiment index is the consumer sentiment and that's going to go up if it does oh not a good news i'm not sure i mean some people think the good news is sentiments go up that means people are still positive about it but for me if consumer sentiment is still up that means recession it's probably still going to linger not yet and then the interest is going to go up and more problems like so um this is this double agent knife um depending on how you want to sit and of course you want to wait for the home sales report for me that is coming up i think if i'm not wrong on tuesday itself why is it so important because before any recession we will actually see the the the the the home sales in the states because if people are not buying people have no money really then they are not buying and everything's declining then um that's also another signal that a recession is coming up as well right so with all in all right this prompted me to actually look more into the defense sector and today we are going to talk about this company rpx ray i i need to i have no idea how to pronounce this word ration return technologies um i do not know i'm not saying that this company is a very good company for us to all invest in because why we are trying to change our model as well when the economy is good we can look at stocks to actually um invest in but economy is bad you also can actually look at stocks to actually short the market so as an investor although as an investor especially investors who are lazy investors like i am we normally look at long-term investment right you want to enter the market look at long-term investment put in our money close to i sleep with ease knowing that the company will actually last at the end of the day but then if in the long if it is in a bear market is it possible for investors knowing that this company is not good not as good or whatever reasons that you have can we also take opportunity in a bear market so this is why we just took a very random store in in in the defense uh industry to analyze to see whether we can just pinpoint just pick any stock easily uh i either buy your stocks uh screening stool buy your affiliates whatever screening tool that you guys have to see whether is there any opportunities in the market because why if you guys know how to invest knows how to trade everywhere is an opportunity no doubt can go up you can go down you can go sideways all right so without further ado if you guys are ready for us or rather ready for me because i'm the one sharing right now ready for me to actually share this particular company do show me some love some light so that i know that you guys are ready with us okay i forgot to take my water but never mind without further ado okay thank you for showing some love and light yeah all right so today we are going to talk about regen technologies rtx on friday the subway closed at 88.88 all right which also deeply so it's actually a defense um it's aerospace and defense company of which it doesn't show a very positive um [Music] response to the stock market on friday itself although we are expecting a recession so what does it do many many people might not know about this company so i actually took this um description off as well so written technologies corporations aerospace and defense company which provides systems and services for the commercial military and government customers worldwide so it specializes in three things commercial military and government customers worldwide if what it does it offers aerospace defense products after mass servicing solutions for aircraft manufacturers airlines blah blah blah and it also supplies aircraft engines for commercial mandatory buses jet general aviation customers etc and it also helps with this uh integrated space communication sensor system for missions training and cyber software solution to intelligence defense federal and commercial customers and another aspect of that right actually helped to design develop produce and sustain integrated air and missile defense defensive and combat solutions land and sea based radar command control communication and intelligence solution for naval and underseason undersea sensor solutions for the u.s
and foreign government customers so reading this right it's a very huge chunk but whatever whatever it is just take note that it works for three ways commercial military and government of which the military and government they have different arms to actually deal with it so this company is not solely serving the government it's not solely serving the military they are also doing the commercial expect all right for us and for fight okay so with all this uh all these tech companies right uh defensive tech companies one thing uh that will actually raise our mind is is this company new because if it's new then we have the credentials in it right and with tech right with all this is this this aviation and i think that one comes to our mind right is hey how about the next big thing that's in the economy right now global warming is it going to contribute to global warming how is it going to help and and how bad is it contributing to the pollutions that's why we see all right do a bit more research that's where we understand more about the company before entering never enter a company that you do not know what is your business is about never all right so looking into the history of this particular company we know that in 2008 it's actually being identified as the 38th largest corporate producer of air pollution air pollution in 2016 it ranked number nine by a toxicity population exposure score okay so in terms of pollution it is one i would say is one of the major producer lahore um but then this wave that you know is 389 so one of the biggest biggest can i mean can have a lot more so one of it so all these studies are actually taken from actually done in u.s um i think it's done by university of uh message duty and sorry i can't pronounce that word but don't laugh at my english um yeah so so if you want to know more about the the amount of pollution that this company is actually you know producing just going wikipedia it's all that it's all there and not to forget right written return technology corporation previously it is not known as previously it is actually um known as something something else i can't remember of which in april 2020 it actually was being purchased over by united technologies corporation to form up this name as retron technologies corporation okay so it's appreciation in april 2020 itself all right and what is happening right now because of all the all the movement towards um marine energy and now so yes the air transport action group and the international air transport association actually set a goal to achieve net zero silver aviation carbon emulsion emissions by 2050. so guess what guys did raitron decides to commit themselves of course la they must commit themselves from being one of the biggest and work with government military they have to commit themselves and this is their promise all right they say that two percent of global emissions comes from the aviation industry as such they want to reduce the carbon dioxide that is being produced by their products using sustainable aviation fields viewers sorry so there are different kinds of fossil fuels there are hydrogen i do not know how they are going to do it i'm not a engineer maybe the tree engineer has better insights to how they can actually change i don't know their viewers to actually help with their products but i'm not engineer so i have no idea um and of course they also say that 80 percent of emissions actually come from long-range flights of which they want to reduce in the regulated emissions from gtf engines um i can't remember what's gtf engine if you guys are interested i can just go on google gtf engine what is it all right okay so at the end of this uh at the end of this very practical article that was published by raytheon technology cooperation i saw they said that this is something that they are committed to doing it committed to doing it but they also say realistically it's another thing they see it themselves realistically and i don't think they are committed but they see how they can actually achieve it okay so coming coming uh being committed is one thing realistic it's another thing so don't forget guys okay and in terms of financial help what does this company do pb ratio 1.82 not the best a bit over valued roe is 5.82 our re5.82 is actually not very good it's very little uh we look at the debt to equity ratio this company in terms of debt financing is actually very healthy less than 0.05
is actually good but if you look into the financial statement you actually know that the income the revenue's income profit is unstable the growth is unstable and the cash flow for this company is fluctuating and it's very unstable what does it mean what does it mean it just means that in terms of fundamentals for this company it's not good right or rather i i or rather if we don't put there's no grains we can also say that it's not as stable as other companies in this industry so when you see that the general market trend okay the general market trend is on the downwards trend yes we know that defense sector is something that is very defensive um there is something of opportunity but but but that is our speculation that is our perspective look into the company itself we know that company is actually not financially very soft so when everything is in like alignment right do you think that this is a company that you can potentially shop mine mine what other what other how confident are you that this company will actually do well in the next five to ten years maybe not maybe not you can look at taking opportunities when it's a very clear strength down down i mean general market downline company not good why not take an opportunity to show it for your consideration guys so if you look into it right into into this company itself putting up some chart we can see that for the past 22 years on a monthly basis right this is a sorry it's a weekly chart on a weekly basis for the past 22 years rtx is actually an upwards trend but this trend is pretty flat okay there are a lot of other companies that if you pull up the chart you can see that it's it's increment of thousands over over 20 years for this particular company it's only positive 2 3 8 over 22 years people who are more conservative would say eight two three is not better to treat it from that uh one one year is about twelve percent not bad but if you are if you are investing in in us companies um does this kind of uh increment not very attractive right nevertheless let's look into it in the daily chart okay i draw this line this is the trend line you look at the trend line is currently on a very direct and obvious downtrend line company is the stock market is showing that it is quite bearish right for now since uh only i think late april is already in the bearish start and we draw another system like you can see that we are still quite far from the basal resistance line how far can this stop for high potential that can fall further there's very high potential drawing the simple moving average 50 over 150 you can see that yes you are still having 50 over 150 but the 50 is actually on a downwards trend what's what does it mean that any time should these stocks continue to actually you know uh move that move downwards you can see that the 150 will cross over 350. sorry what did i just say 150 will cross over the 50 to show that the stock is actually on the downward momentum and when that happens that's where investors um can actually take opportunity to short the stock to shut the stock um from when it actually has a turnover to when it turns back to the positive um range of which must please take note of some point key pointers of which is actually the resistance line all right all right i hope that you guys are still here with me and you do understand what am i talking about if you do not understand what i'm talking about please type in the chat because i do want to hear from you as well okay so this is from my point of view that if you want to invest if you are investors always invest in fundamentally strong companies if you scrolling upwards all right if the whole economy is going up invest in strong fundamentally strong companies but if the market is going downwards we can also take opportunities in fundamentally not strong companies to write the momentum most importantly is write the momentum and not against the momentum okay so what goes higher and goes higher similarly what goes slower can go lower as well so if there is nobody with any questions that's the end of my sharing so please do remember to like like like and share like this session so that i'll be more motivated to actually share more with you guys next time as well um so that's all i have and over to you trade engineer all right great great sharing by financial missy thanks thanks for watching missy you're sharing your your insightful um uh insights right of this particular stock right so i hope all of you have cleaned something very valuable right in this session like both for the macroeconomic point of view as well at this particular stock right and don't forget to click that like or love button like if you enjoy the sharing so far right so yeah uh on to my segment right um so just now i had some technical difficulties and fortunately it's sorted out now so i can see you know everyone can see the screen yep so um yep so let me go delve into my section proper right so i'll be you know dropping more into the technical parts of it like being the trade engineer right and i hope this will also give you some value right if you're looking at this particular stock so let me first share my screen all right yes and here's my screen right so this particular stock like rtx or veyton raytheon technologies however required right um so he has come down quite a fair bit right um not not too much it was 16 for his all-time high right so what's what's my view on this stock and whether this is a buying opportunity right so that's going what we'll be starting for today before i begin but don't forget click that like button if you're here you're still here live with me right so this is about the stock we are going to talk about and here is the price chart right for raytheon technologies like rtx and this is on the overall price chart like from the daily basis all right so you can see right in a nutshell right um basically this the stock price has been clearing quite a fair bit like it actually dropped no sometime in 2020 right before he actually goes up uh he is all-time high around here and now it corrected down about 16 right it actually hit all-time high right about on 20th of april 2022 but just a few months ago his all-time high price was about you know us dollars 106 right and you know fast forward to today right 17th of june like last friday the closing price was 88.88 right um a very nice number here right like basically you what uh eight four times right um but basically i don't if you're holding this stock since april i don't think you're watching a lot because you're actually losing money yeah so um this you know is not too good news but if it actually continues to go down even further right so it's actually down 16 percent right you do the math and let's now look at some recent news right surrounding this particular stock let's get some background and to get some um understanding right of this stock so here here is one particular article right from variance.com but um talking about vader right this particular stock right and in this article like on the april 26 like just a few months ago um just you know just after it started you know falling like it actually mentioned here that you know this company expects years to fall right and primarily due to the russian sanctions right so um if we look down from the article deeper right what you actually mentioned right this this company is actually cutting its full year sales forecast right um at that time right and the reason cited was that russian russian sanctions right um so very new rise right revenue-wise it was estimated to be quite um still quite high about 67.75 billion to 68.75 billion but you know one of these figures seems high it was actually you know lower than the the range given previously back in january right so it is expecting you know some further downside right to come right and you know in the first quarter right in the first quarter this company also took a hit about 300 million in charges and adjustment of our expenses related to the fashion sanctions right so that was a big hit to them you know and there was also about 80 million still as well did not materialize due to the impact of it like um you know even on the website right it also stated that it has suspended operation in russia just a lot of other u.s companies right and all seals and
support sources to russia civil aviation industry it has also had a joint venture right in the region and that's something that it is not going back to right um because you know um it is not operating in russia anymore right and you know um this joint venture will also be suspended like so that no that also means you know some revenue will be lost as a result right and you know this joint venture actually you know um together to build parts like for big companies like you know buying an embracer right so all this is now close so that is going to affect this company as well so this cup this article this particular article actually took a pretty you know a bearish stance towards this company right he actually feels that you know um um this company might might not be you know may seem more downside in time to come right right and we got people in the article right uh you know he also mentioned further details like the you know russia actually make up about 1.5 percent of total steers right and you know um although the company said that we might be they might be able to offset that like through cost reduction um but you know 1.5 percent it might seem small but it is also not particularly small right um for them um you know russia is also a large source of some of the titanium and casting supplies for this company as well right and with that one now the sanctions list like they can't they need to source for other alternative supplies right but of course you know at the end they still mention that they are confident of long-term outlook but especially you know with the pandemic you know easing up people are returning back to trevor and you know as a defense company right every country will still have to invest in defense right um and you know with the ukraine wars well you know a country might be more willing to invest more money in defense so that's something that could be a positive catalyst for this company if it actually wins you know more on such contract more such defense contracts right right so you know um i think there's no uh financial musician mentioned a bit about vaithyon right but in this article also mentioned that you know it has no few other units like um invading like such as the aircraft engine manufacturer pratt whitney like sensor solution provider like intelligence and space and it's missile and defense right so these are the three units that makes up way too on right um additionally right additionally you also mentioned that there are some supply chain constraints and challenges like um on certain you know land warfare air defense program that impacted its missile and defense sales right in the first quarter right but you know the higher commercial after sales after market sales right also offset that lower matrices volume right so that's both plus and minus here all right so that's the article right um that actually offers a bit of a downside view right and this is another article offering a different perspective right of racion um stock right so this is taken from seeking alpha.com right so um in summary right in summary um they actually you know hide a few things here like um first of all was you know um the ongoing recovery in demand for commercial aviation parts and equipment right so that is something of a positive right uh that's why i mentioned just now as well supply chain disruptions like um have limited sales for key defense segment weapon system right that is a bit of a minus but you know there's there's some outlook that points towards stronger growth going forward but i know in this article this article itself was actually pretty bullish right pretty bullish and let's let's examine why right let's examine why so first of all right first of all um we got to look at some of the recent earnings like um so we only have the latest result in q1 so this is something that that was shared right so q1 results right it's earnings per share right off you know 1.15 actually you know was higher like 28 higher from the period compared to last year and it was above market expectations right revenue was also higher like um 3.1 percent year over year um although that was you know slightly below the estimate right so the story right for this quarter was actually the strength on the aerospace side balancing some weakness in the defense group right so that was the story for the q1 right and here's what's the chart that was shown you know in the q1 the presentation right so there are some qualities you can see over here right um so you look at sales sales wise right there was uh it is higher 15.7 billion
compared to 15.3 billion back in 2021 that's amounting to about four percent organic growth right um we look at earnings per share like eps right you actually see that you know both not on the um gap or adjusted like both uh both points of view you know also we see that the only pressure is higher as compared to the first quarter last year right and cash flow is also positive right cash flow your free cash flow is still amounted to about 37 right 37 million right over here right so um so all this seems to know pretty positive right um at least on the first quarter result right so you know if we look further right in further details of um that earnings result right um basically you know the um they they also mentioned like colleen's aerospace and the prep and whitney businesses that grow adjusted sears up up about 10 and 12 percent each right so these are 10 this was 12 right right and you know that's why i mentioned ongoing rebound industrial air traffic people are returning back to traveling right and that also is translated to strong demand right for commercial after market parts right so this also bring business for this particular company right but i know there'll be supply chain constraints right um in terms of the intelligent space and defense and missile um category right and the revenue actually declined in both these areas right yep and before i mentioned in the periodicals well we already know that you know this company has exited the russian market completely right and the other thing to take note for raytheon right is its dividend increase right so it actually increased its dividend like lately like to eight percent year on year right um so you know it actually has that um history of increasing dividends in fact it's known as that dividend aristocrat with a 28-year history of annual dividend increases so there could be some categories you know some people might want to go to dividend stocks right and you know this might be a a company that consistently paid out dividends right so looking into more details like office dividends right it has actually you know um dividend coverage actually represents an annual payout like about 3.3 billion and this is actually sustainable like if you look at the earnings like actually well supported by underlying earnings right and management right the company management also has some intention right to actually buy back you know approximately 2.5 billion in stock right so you're showing some support for this particular stock as well right and you know it's by the like balance sheet wise it also looks pretty solid right um it actually ended up quarter with six billion in cash and equivalents and against 31.3 billion in long-term debt right so we calculate the debt to you know ebta um the average ratio is about two times right and if you compare with no other similar companies it's actually a pretty strong level but it's not overly leveraged all right so to move on right actually the com the article also mentioned a few other things as well right you know with this earnings in perspective right um what what what's we want what your height here right actually that you know this company has actually outperformed like the border market so if you look at smp500 for instance like um it hasn't you know fallen as much as s p 500 but it has also been an upward trend in the past year right um with all these categories like improved outlook in the air travel the russian ukraine war by also causing some positive catalyst for the stock and this particular article actually likes this dog right he actually likes this stock um why he likes this stock is because it's diversification across aerospace and defense right um so that includes you know some civilian aviation exposure as well as some high profile weapon system right in fact no time it's um uh machinery right has actually made headlines in the eastern russian ukraine wall right so in particular this javelin anti-tank guided munition right as well as you know some other missiles jets that are also being used in ukraine right so you know um there was also an interview right with the ceo the company right and you know um he expected like that there's new order to rebuild this inventory through next year right with the with all these weapons being sent to ukraine but you know that supply chain disruption right um for key manufacturing input right um so the company is maybe a challenge for a company and the company is actually doing something about it they're actually going to be redesigning some components based on you know the availability of material right and they actually succeed in that you know that could be a positive plus point for the company right right so also important to recognize that the missile defense segment has a wide variety of in-demand products right and all this is on top of the existing segment backlog of 29 billion right so actually you know it actually views that you know if this missile and defense segment segment actually takes off like um there could be a lot of catalyst for this company right there could be a lot of categories for this company to actually make hit way in the future all right so that what's the article stands so yeah one article is you know a bit bearish and article would be bullish on it and you know um this article is more neutral it's actually just taken a few days ago june 17th right and it was actually solving some recent news right with this company right so this company actually right has just won a contract like to build standard nissan tree block um missile right with electro optical guidance right for missile defense right a lot a lot of trim things here but basically you know you just want to contract like a big contract here right so what it does right uh what it does what um what we will be doing right we'll be rebuilding surface warship and land-based missile by design to acquire track destroy incoming ballistic missiles right and this contract is actually worth a whopping 666.6 million
right and what are these four like who are these four these are actually for the u.s military as well as japan government right so this is uh something to look forward to for this talk but you know do take note of this it's pretty long term like by the time this is completed but it is you know 2026 right so it's four years from now right so yeah it won't be anytime soon right so um this is something just to take note right um but nevertheless it's won this contract so it has at least some business in um for this no from now two two zero two six right right so that's enough quite a bit a lengthy background for our veteran technologies like rtx right um hope that gives you some background for it but no we also want to know what what is what to look out for right in time to come what is the future right for rtx and to do that right we look at the technicals right to give us some insight but before we do so like if you're liking what we are sharing so far like do give this video a like or a love once again right so that uh i know that yeah i'm adding value to all of you guys out there right and let's you know proceed to remove to check out the price chart for more details right so here's uh radeon technologies rtx on the daily chart right on the daily chart right so um first of all you can see this one line they are drawn right this is actually called the uptrend line right it has been tested uh one time here two time here three times here four times here and you know it came down slightly we bounded back up here right so we also tested successfully here but you know recent times you can see that it has blocked below this uptrend line and hasn't crossed back up ever since right it has been trading below this uptrend line right so this is actually quite pretty long-term uptrend line right this up trend line has been supported since 2020 right since 2020 and you know if you look back when it actually broke over here it didn't look it didn't come back but that was actually very recently right on the 16th of june 20-22 right so that is something that's not too good but it might imply that you know there is some bearish momentum to come like if this continues to trade below this long-term china right there there could be this new downtrend forming right and this was something that was shared by financial messy earlier as well right um a bit differently though but i use the 200-day sma right so this is the 50-day sma the the 200-day sma right so um so the 50-day sma is the purple one right this line over here right and the 200-day sma is the black line over here right so you can see the 50-day estimate has been hovering above that 200 sma right which is a good sign on the long term basis but but um there is some concern right recently when you see the gap here it's actually narrowing right um it actually never here right before it went back up again right as the price went up right but now it's narrowing again right so if it makes a cross like if the 50-day sma crosses below the 200 enemy then that could be the confirmation of a bearish bearishness for this stock right but of course you know smas are typically a bit of a lagging effect right so we only use this as an indication right um so if we zoom in right if we zoom in you can see that i actually joined a few more lines here but on the daily chart as well right and there is something known as a descending channel right um with the downtrend line right as well as the lower um channel channel line right right so this is um you can see that the price is has been trading within this channel right when this descending channel right is trading below this downtrend line right um it's short term downtrend line and it's also trading in this descending channel right this descending channel you know in a way you can see that um quite clearly right that prices are forming a lower high and a lower low right so um yeah lower low sorry for typo here right but basically right basically that is an indication of a downtrend right if this continues on right no it will just get lower and lower and lower right so you can see that it is you know on the verge of you know testing this um lower channel your channel line right um so it might it might test it it might not test it we shall see how it goes right um but you know this is uh it has been tested previously you know numerous times before here in the past right um so there could be that possibility of testing this downward lower channel line before it bounces back up again right and you know we also can look at horizontal support levels as well right so you can see that you know the first horizon support is actually at this level right very close to our current level now our current price now which is 88.4 us dollars right that's the first horizontal support right so it was tested here usd right uh and it actually went slightly below before i close up you know on friday right so if this first horizon support breaks right uh it might you know move on to test the lower channel support like as the support right but if that breaks as well then we could be looking where we could be looking at this second horizontal support level at about 84.8 to 85 us
dollars right right but you know if it bounces back up right then we could be looking at resistance levels right and some of the resistance levels are shown here right for horizontal resistance levels the first horizontal resistance level is around 91 95.1 to 95.2 right so it used to be the resistance here as well as the support over here right and you know if you know that first resistance line breaks right and the downtrend line also breaks right and we could be looking at this higher resistance level right at about 100.6 us dollars right so it was tested here right and you know somewhere here as well right so now this is something to watch out for but if you know price actually makes a bounce back up and actually you know has a further upside to it right and you know msc device macd wise is also you know a bit bearish it's actually looking negative on the daily macd right and there is currently no signs of it becoming less negative yet right you see it's still strongly negative over here right so in summary like in some way like they're both blue and bad arguments for this particular stock right on the booster things the 50 sma is still above the 200-day sma right nbi forging numerous support levels like such as the first honda support as well as the lower channel support right but there are also bearish um uh indications right um quite a number as well um for various site things you know eij broke that long term uptrend line right tested since 2020 again between 50 estimated and fdsma is narrowing right it is trading below that downtrend line and it is still trading within that descending channel right so um the downtrend might still persist and last but not least by macd right on the daily chart is also still negative but what should we do for trading right what should i do for trading um so over here right before i delve deeper just like to point out that this is my own opinion like please do your own due diligence before um um you know buying or selling any stock right so um so with that being said right now i'll advise know people to actually wait and see first for this talk like check to see whether that first horizon support or lower channel line is actually convincingly supported right um if it is if this there could be a bounce back up and we get to the opportunity to go long right um but of course we also have to check you know additional confirmation right of macd it becomes less negative right um and that could be that confirmation to go long right so you can perform a long trade right this is a short term long trade because you know it's still in the downtrend but we're just catching that bounce back up right and um with the first horizontal resistance of the upper chain line is the take profit price like i said the stop loss slightly below that lower chain line right because the edging actually acting as a support but of course you know if you are on to play safe because it is in a downtrend right so um technically you might want to actually follow the trend right um so we could perform a short entry right there but we probably have to wait a bit longer right wait to see the price hitting the upper channel line right and it actually cannot break above that upper chain line which is actually that downtrend line so it means it's convincingly resisted right and you see that the enemy actually shows signs are becoming more negative right that we can then perform a short trade right with a stop loss set slightly above that upper channel line right or that down trend line right so that's a safer option if you're doing a short trade right wait until you hit the resistance level and then perform that short trade right so you can go both long and short but um for this particular stock um but let's you know you have to observe how it goes with the price action and whether there's any confirmation of all these indications right yep so that's my take right off of this particular stock right and if you like our sharing for today right don't forget to click that like or love button right as well as you know share this video right so that more people can benefit from our sharing right if you haven't done so already you can follow us on our social media pages like um i have my social media handles over here and financial messy has hers over here right you can leave a comment like um in the comment box below right on what you think of our sharing for today right as well as you know suggest the next stop for our next sharing right and you know you can tune in every sunday right as you already know by now um we do this every sunday at 4 pm right so next week will be on financial missy's facebook page right and now that that's all i have for you guys you know i hope all you have green something very useful yep and thanks for the comments look and uh nicholas right glad that you all have learned something very useful right um today i hope all you guys who are also listening right now i know also learned something very valuable for today right um and you know as the market is very volatile now like do stay safe do um trade or invest with caution right uh you don't want to lose your hard-earned money right um once again i think we need to emphasize that uh because you know the times the the market is getting increasingly volatile right um you know you never know we'll be headed for a recession but um but no one knows when a recession will come so do play do be safe and do um protect your capital right to protect your money right um financially do you have any last words to add um nope nothing to add but please be safe out there everything is very volatile and you do not want to take unnecessary yeast so many choice is very important yes agree agree yes especially these times we need to manage rvs very well right um do stay safe right do stay safe everyone and you know i wish all of you all the best of luck for the northern upcoming week right and let us know like what stock you'd like us to pick you know or go off into next week in the comments if you have any burning stock you'd like us to analyze right but if not um we'll see you guys again next week with another u.s stock right see you guys right happy father's day once again and adios
2022-06-21