Little bottom line growth. Only increase in profits is primarily due to cost cutting which has gone too deep and is starting to affect quality. Honeywell looks stretched thin here. Been a long time holder, but have taken quite a bit off the table here recently. How many more quarters can they go with the increase in profits coming primarily from cost cutting? How long will the street continue to reward them for it?
The PE is extended at this point. If the fed starts tapering you'll see that multiple go down. If the government does additional cost cutting HON could see less business from them. QE infinity could continue to inflate this multiple, but we all know that isn't going to last forever. In my view there is limited upside from here, and when the down side does come, you'll see greater compression here than elsewhere in the space.
Dave Cote has done a wonderful job creating shareholder value in the short term during a tough time. Unfortunately I feel he has catered too much to the shareholders and through too aggressive cost cutting has damaged the company brand and the long term prospects for the company. We'll see how the next few quarters/years go to see if I'm correct or not.
Still long, but only 15% of what i was. UOP has potential if they run with it.
The big question is when this happens. So hard to time. Any guesses for what will pop the bubble? Maybe a quarter report like csco did yesterday
It is hard to imagine why Hon reaches all time highs when csco ceo just stated global growth weakening.