An Activist Investor Wants to Break Up Dow Jones Blue Chip Honeywell. Is It Time to Buy the Stock?

The activist firm Elliott Investment Management has written to Honeywell International's (NASDAQ: HON) board of directors arguing for the conglomerate's breakup. The move follows a period of disappointing performance for the stock over the last few years: It's up only 4.8% over the previous three years compared to a 27% increase in the S&P 500 index.Is Elliott's move a catalyst to buy the stock?Elliott's central argument is that Honeywell's conglomerate structure is no longer suitable, and separating the company into two new companies focused on aerospace and automation is in the best interests of shareholders. In the letter, which was made public, the investment firm makes two key arguments in support of this case.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool