Topic: How To Invest

Spinoffs, Takeovers & Special Situations Hotline – Friday, October 6, 2017

Article Excerpt

HONEYWELL INTERNATIONAL, $143.62, symbol HON on New York, is a diversified technology firm operating in four main segments: Aerospace (38% of sales); Home and Building (27%); Performance Materials (24%); and Safety and Productivity (11%). The company is still the target of activist investors, including Dan Loeb’s Third Point LLC hedge fund. They want Honeywell to take steps to boost shareholder value. Most likely in response to that push, the company will now increase its quarterly dividend by 12.0%. With the December 2017 payment, shareholders will receive $0.745 per share instead of $0.665. The new annual rate of $2.98 yields 2.1%. Meanwhile, Honeywell is concluding a review of its business operations. It expects to reveal its restructuring plans—including possible spinoffs—before announcing its third quarter earnings on October 20. OUR RECOMMENDATION: Honeywell is a buy. STELCO HOLDINGS INC. is a privately held steel producer based in Hamilton, Ontario. The company has now filed the necessary paperwork for an initial public offering (IPO) on the Toronto stock exchange. Stelco…