Wednesday, January 20, 2016

Seeking Alpha: Not All's Well At Honeywell

American industrial conglomerate Honeywell (NYSE:HON) has a lot of positives going for it - the company is leveraged to several markets that look relatively healthy going into 2016, management has credibility when it comes to margin improvement efforts, and the balance sheet is in pretty good shape. That said, investors are bailing out of industrials left and right, and Honeywell shares have fallen about 10% from my midyear update. What's more, the health of key markets like aerospace, construction, and auto aren't exactly guaranteed and industrial markets look to be in for a weak run.

Between the prospects for a recession in manufacturing in 2016 and management's relatively conservative guidance for the year, I suppose I can understand why fund managers aren't eager to hold Honeywell right now. Nevertheless, I think this may well be a case where individual investors can benefit from not having that need to respond/report to clients with hair triggers; buying a dip usually means you're buying into trouble, but unless you think the world is in for a really bad stretch, I think this is the sort of opportunity that investors can exploit to get Honeywell shares at a more attractive price.

Read the full article here:
Not All's Well At Honeywell

No comments: