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Investorman

03/07/03 1:09 PM

#37 RE: xxrayeyes #36

Ok - Thanks for the clarification.
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Investorman

03/07/03 2:23 PM

#39 RE: xxrayeyes #36

To get back on the subject.... What do you think of HON?

Current price: $21.61
Dividend Yield: 3.40%
Honeywell has made major changes during the past year setting the stage for 8% to 10% annual growth in operating income over the next couple of years. They have significantly increased free cash flow despite a 6% decline in revenue. HON is strong financially, having used its free cash flow and proceeds from its sale of nonstrategic businesses to reduce net debt by about $1.2 billion in the past two years. They have $2 billion in cash and they will probably use some of it to buy back stock and maintain the dividend. The stock appears to be trading at a significant discount to its estimated fair value.

Your input would be appreciated.