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Strategies & Market Trends : Value Investing

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From: E_K_S	11/9/2005 4:47:20 PM
	Read Replies (2) of 78920

Added some HON (Honeywell International) to my earlier position purchased in 2003 in the mid 20's. According to Yahoo HON has a forward PE now of 14.5 and the company does expect good overall growth in their avionics division. I like their positive free flow cash flow especially as their revenue is well diversified from all parts of the world. It's not a steal when measured by it's price/book but I believe you do pick up a bargain when looking at their increasing margins and measure this to their current Price/Sales ratio of 1.2. If you look at the performance of HON compared to BA, HON has a ways to go higher. (http://finance.yahoo.com/q/bc?t=5y&s=HON&l=on&z=m&q=l&c=ba&c=%5EDJI) My two year price target is $45. HON does pay a pretty good dividend at 2.3% but I expect to increase this return by selling some covered calls. Finally, company insiders have recently bought some pretty large positions in late October 2005 in the $34 dollar range. (http://finance.yahoo.com/q/it?s=HON) EKS

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