Jim Cramer Thinks Honeywell's Breakup Could Pay Off

Honeywell International Inc. (NASDAQ:HON) is one of the stocks in Jim Cramer’s game plan for this week. During the episode, Cramer discussed the company’s spin-off plans, as he remarked:

“Runner up, though, will be, well, it looks like a sleeper right now, Solstice, the Solstice analyst meeting. Solstice is Honeywell’s advanced materials spinoff, which is now getting zero credit… The breakup that Honeywell’s having will end up giving you a pure play aerospace company, which this market craves, as well as a building automation company that has some of the best technology and yet is unheralded… The Solstice is happening earlier.

Now, I don’t want to get ahead of myself as the materials company might be an undiscovered gem, but Honeywell’s making a pretty bold move here. You know, it’s breaking up what former CEO Dave Cote put together when he was running the company. Now, I praise Dave in my new book, How to Make Money in Any Market, for his acumen in turning divisions around and constantly shuffling the portfolio to upgrade performance. I believe he’d be very happy, though, with this breakup by Vimal Kapur, the current CEO. Although right now it’s in limbo because the big breakup between automation and aerospace is very far away, and no one wants to take a leap of faith. They won’t get in now for what’s going to happen more than a year from now.”

Honeywell International Inc. (NASDAQ:HON) develops technologies that include aerospace, industrial automation, building management, and energy sustainability.

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Disclosure: None. This article is originally published at Insider Monkey.