Christine Poole Honeywell International HON-N WAIT Feb 20, 2025

Business model has come under pressure, not too many industrial conglomerates left. So much hidden value that can be unlocked over the next 2-3 years. Wonderful aerospace and defense, as well as automation. Separating them makes a lot of sense. Valuation is very attractive. Yield is 2%.

Special situation. Industrial conglomerate with 2 phenomenal businesses, aerospace and automation. Over the next year will split into 2 separate companies, each with its own capital allocation framework; potential to unlock a lot of value of between 50-100%. 

Trades ~20x PE, really good upside. He'd say to hold both those businesses once they come into being next year. Yield is 2.2%.

He owns a lot. Their growth is in aerospace. Nobody wants Boeing, so they'll buy HON. He also likes their chemicals business, though it isn't growth. Their automation is a work in progress.

The company and CEO are doing everything right, but shares are highly undervalued.

HON is a different conversation. Decades ago, we went through the big industrial conglomerate phase. Now we're in the specialization phase. The segments are already functioning well; it doesn't need the overhaul that GE was desperate for.

It was upgraded today. The sum of the parts will be far greater when they break up HON later. A perpetual compounder that you can own long term.

The chart is positive, upwards and has broken out to new highs. Higher highs and higher lows. Good technicals. Is enjoying the benefits Trump's big bill, at least the market's reaction to it.

Interesting here. Long-term chart is favourable. Trading around 50-day MA, and moving averages are moving higher. A split would be very favourable. These companies set up their spinoffs for success. Likes industrials. Diverse company with interesting components. He'd be comfortable owning this one.

So many moving pieces in the puzzle. 12-month price target of $253, decent runway. Activist Elliott Management has forced a breakup. People get concerned about spinoffs, but thinks it will be fine. Biggest division will be aerospace -- sort of cyclical. Second is automation -- in renewables and so on. 

Third division, Advanced Materials, encompasses AI. Pretty small, as only 3-4% of revenues go there. Just announced it's now largest shareholder in Quantinuum, with second-largest being NVDA. Makes it a significant player in quantum computing. On July 24, beat top and bottom and raised guidance. Yield is 2.13%.