Cramer Endorses Honeywell (HON, BA)
On today’s STOP TRADING segment on CNBC, Jim Cramer was at least happier today than last week since the market stabilized. Cramer said he’d buy Honeywell (NYSE:HON) as one that belongs in the same league as Boeing (NYSE:BA). He likes that they blew out numbers and are buying more stock than anyone else. Cramer said he would prefer to see more dividend hikes as long-term signals of conviction.
Honeywell is one that is within 4% of its 52-week highs and does trade at premium multiples to other DJIA components. On top of its ability or desire to repurchase shares, it still also has many opportunities to prune down its portfolio and focus on core operations. We’ll leave that up to the company as to what their strategy is for now at least, particularly as the conglomerate has so many areas it operates in.
Jon C. Ogg
July 30, 2007
Jon Ogg can be reached at firstname.lastname@example.org; he does not own securities in the companies he covers.