gotchanewsdaily.com 
We are selling 100 shares of Honeywell at roughly $211.32. Following the trade, Jim Cramer’s Charitable Trust will own 400 shares of HON, decreasing its weighting to roughly 2.5% from 3.05%. Honeywell has rallied about $4 per share since we downgraded our rating to a 2 on Oct. 29, but are down about $9 apiece since reporting a mixed set of third-quarter results on Oct. 24. It was a tough decision to downgrade because we have championed the portfolio reshuffling actions that management has undertaken to create value for shareholders. With billions in dry powder and balance sheet capacity, Honeywell has made a series of bolt-on acquisitions aimed at boosting the company’s growth and margin profile. At the same time, executives have pledged to simplify the company by getting rid of businesses that aren’t aligned with the three so-called megatrends: the future of aviation, energy transition and automation. For example, Honeywell plans to spin off its advanced materials business and is exploring a sale of its PPE business. These are all smart decisions for the long-term. However, execution of Honeywell’s current operations has been spotty and is hurting the stock. In a time when many industrial stocks were beating and raising their outlooks, Honeywell lowered parts of its full-year guidance two quarters in a row. After the third quarter, Honeywell lowered its sales outlook due to project pushouts in its energy business and a fire at a Honeywell aerospace plant that limited output. The warehouse automation business also hasn’t rebounded like many thought it would at the start of the year. After its recent earnings report, Honeywell lost a long-term bull in Wolfe Research. The analyst downgraded its rating on Honeywell to a hold-equivalent peer perform on concerns that 2025 will be another year of lagging growth. Due to the growth uncertainties that lie ahead, we want to lighten up on our Honeywell position into Tuesday’s strength. We’d rather have this cash to buy more shares in newer names like CrowdStrike and BlackRock or other industrials like Dover , Eaton and DuPont . All three had better quarters. From this Honeywell sale, we’ll realize a gain of 31% on stock purchased in September 2020. (Jim Cramer’s Charitable Trust is long HON, CRWD, BLK, DOV, ETN and DD See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
