United Technologies Corporation (UTX) Merger Bid: Why Honeywell International Inc. (HON) Is Wrong

It should just keep doing what is has been doing since the failed takeover by General Electric (NYSE: GE) in 2000.

David Cote built a company that is the model for the industry. Only five years ago, its profit margin was just 9%. It has doubled since then.

Honeywell’s stock has also outperformed its peers by far. Over the past five years, it is up a respectable 80%, not counting dividends. Using the same criteria, United Technologies has been stagnant with a mere 15% gain. And even GE is up only 37%.

“A big deal that goes bad can ruin a company,” Cote told Fortune magazine in May 2012.

He should take his own advice and walk away.

This article is brought to you courtesy of Tony Daltorio from Wyatt Investment Research.

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