Javed Mirza Honeywell International HON-N BUY Jul 08, 2025

Announced spinoffs. Lots of costs involved in decentralizing. Quarterly results and guidance were weak. Too early to enter. Not sure she'd want to own all the resulting parts. Needs more visibility.

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.

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%.

Very good company. Somewhat expensive against historical multiples, but that can be said about a lot of industrials. Sector's done extremely well, so that means there's lots of choice. This one doesn't make his team.

Has lagged the market, but has AI exposure in aerospace automation and advanced materials. They supply US defence and cybersecurity. Is still trending higher with 20% upside. Is oversold now.