I Wonder what up with this monster size buy?
I am sure that it will come out that he had to sell $32M in stock to pay his income taxes and capture his options. Poor guy. I feel so sad for him. Maybe we should have taken up a collection for him.
MLCG, MDCN, CGRW, DIDG, EAPH, GRCU, LATF, CBIS, MLCG + WMC TXMD SMSI RITT
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Never worked for Hon and never would. I do know employees hourly and salaried. Also know quality people that turned down jobs there because of starting rate. that's all I was referring. As far as dumb money I'll take all the stock splits or buy backs or dividends I can get in my core or retirement funds Stock split doesn't affect eps just double the shares at half the price agreed a wash. But next quarter when mutual funds and reinvestment trusts and 401ks which are the major holders buy they get twice as many shares so on and on very safe and profitable over time. As far as your remarks about if I don't like it move on. Heard that statement many times usually from bad management. People that didn't relize the importance of hiring and keeping good people. I was hourly and management. Plus ran my own business . I know the importance of employees. They are the back bone of copany. And Hon is good co. Just low starting pay.
My thoughts on this are that the whole of MSI is too much for Honeywell to digest without creating a long and costly period of business integration. Honeywell has not done a big deal in quite some time, sticking to the under $1B "bolt-on" deals. Would think that MSI gets taken out by a private equity group and cleaned-up into salable pieces. Like you said, there is not much left of MSI however, the capitalization is around $16B and that's not small change. MSI consists of products and services and that can be further broken down into government and commercial. The products segment has higher margins than the services units but the services could have greater potential. The Honeywell Solutions& Technologies segment contains Energy, Safety and Security divisions and parts of the Motorola Government & Public Safety Products & Solutions businesses could be a good fit. Don't think that Honeywell would buy the whole of MSI and they have worked in the past with private equity firms that do the heavy lifting and break-up into marketable parts. Of course there is always an outside chance that Cote sees this as a way for him to over-perform his new five-year plan and trade-off some short-term performance for longer-term gain and does a big deal.
Curious as to how you think what part(s) of Motorola will fit with Honeywell. The microprocessor has already been spun off, the cellphone business is gone. They do have some emergency services assets, but where does that fit with Honeywell? Maybe there is something else of value that will fit. Curious about your thoughts here.
Dumb money continues to talk without any understanding of underlying value. Earnings and earnings growth is what counts. Double the number of shares and the earnings per share halves. Oh! And the dividend per share halves also. The net impact from a stock split of a large cap company is a wash.
Make total sense in that a split does zero for the vast majority (large institutional investors) of net
owners of HON stock.
Keep the outstanding number of shares and hike the EPS.........that's what I want to see.
I too have been holding HON thru at least 2 stock splits. My increasing number of shares and the increasing dividend have compunded my wealth. I believe the positive feeling investors have for HON and their desire to buy its shares has a lot to do with the earlier stock splits. Stock splits are indicative of a vibrant, growing, healthy company.
While I have been calling for a stock split (long overdue) many on this board seem to be happy with $100/share. With a stock split I feel HON will effectively far exceed $100/share.