OTIS Otis Worldwide Corp

$OTIS Took a starter position today. My thesis is: you’re buying a high-quality recurring-service franchise at a depressed valuation because the market is focused on weak new-equipment demand, especially China. But Wall Street is completely ignoring the durable part of the business: once installed elevators need maintenance, repair, parts and eventual modernization for decades, which creates sticky recurring revenue and good cash generation. New installations are cyclical, but service/modernization provide ballast. So the bet is that you don’t need a construction boom. You just need China/new-equipment weakness to stop getting worse while service keeps compounding. If that happens, the market can rerate OTIS from a beaten-down multiple back toward something closer to its historical quality premium. Can it go down from here? Yes. But risk reward seems favorable in the mid $60’s.

$OTIS good time to add. There will always be a need for elevators and they need inspecting annually!

$OTIS there’s gotta be some type of value move in the market otherwise this one’s gonna continue to bleed. They’re chasing growth man. They can bring this one down and market cap a pretty good amount, just take a look at the multiple, they still have a ways to go. It could be a Vali trap at these levels. Sometimes companies like this in this market take years for recovery, they take so much value out of it and it takes a really really strong growth report in order for it too bounce and bounce strong staying long-term on it though, so many companies are trading higher than pre-Covid levels and then you got companies like this that are not, almost like they didn’t grow at all. I’m sorry but companies grow in times of inflation, it’s just the way it is. Business owners love inflation until it starts affecting their customer base

$OTIS same thing happened in 99, they let go of aging companies to go after the new tech that just hit the market. Not all  succeeded but the new company were company such as Apple Microsoft etc. basically the future

$OTIS ever since Josh Brown from CNBC finance got involved in this thing and started recommending it started tanking, $RKT go figure