Should You Buy the Honeywell Aerospace Spinoff?
What does this industrial conglomerate's further dismantling mean for investors?
Should You Buy the Honeywell Aerospace Spinoff?
Overview
Honeywell International (NASDAQ: HON), one of the world's largest industrial conglomerates, continues to dismantle itself. Less than a year after spinning off Solstice Advanced Materials, the company is gearing up for an even larger spinoff.
Later this month, Honeywell will split into two separate companies: Honeywell Aerospace and Honeywell Technologies. The expectation is that each company, as a pure play in its respective industry, will receive a higher valuation than the diversified Honeywell has as a public company.
Details
However, while spinoffs are a useful tool for maximizing shareholder value, they aren't necessarily a silver bullet. Let's take a closer look at the math behind this transaction, as well as recent price action with Honeywell shares, and determine whether it's worthwhile to buy Honeywell Aerospace, as well as when exactly to buy it.
Source
Originally published at www.fool.com.
