ITT (NYSE:ITT) is about to release earnings results. Ponder this Bear Case Scenario.
ITT is burdened with a relatively high exposure to Europe at 30% of revenue. Secular economic troubles facing the European Community will pressure ITT’s financial results. This looks like a long-term boat anchor.
Asbestos liabilities are still around and retarding shareholder wealth. Post retirement liabilities also continue to frustrate balance sheet optics.
ITT business are wide-ranging. Many investors are not ready to take time to understand them. Therefore the demand dynamic is weak. When investors do not understand the stock well the level of emotional investing jumps. Buckle up this may be a rough ride.
George Gutowski writes from a caveat emptor perspective.