Take advantage of these industrial spinoffs

Article Excerpt

HONEYWELL INTERNATIONAL INC. $146 (New York symbol HON; Manufacturing Sector; Shares outstanding: 761.8 million; Market cap: $111.2 billion; Takeover Target Rating: Medium; Dividend yield: 1.6%; TSINetwork Rating: Average; www.honeywell.com) 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 the target of several activist investors, including Dan Loeb’s Third Point LLC hedge fund. Those investors want Honeywell to spin off its Aerospace business, which supplies parts for Airbus and Boeing jets. Honeywell rejected that demand, and will hang onto the Aerospace division. Instead, it will spin off two of its other businesses—Homes and Global Distribution, and Transportation Systems. Homes and Global Distribution makes heating, ventilation and air conditioning equipment. It also distributes fire-protection and building security products. It has annual revenue of $4.5 billion. Transportation Systems makes turbochargers for car and truck engines. Its annual revenue is $3.0 billion. Honeywell has yet to announce details…