Picking the Winners of the Honeywell Breakup

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 30 June 2026

⏱️ 25 minutes

🔗️ Recording | iTunes | RSS

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Summary

The Honeywell International of 10 years ago is now six different publicly traded companies. This week, Honeywell International split with Honeywell Aerospace to complete the pre-planned separation. Tyler, Matt, and Lou look break down the prospects for the disparate parts as standalone companies and pick which ones will be the outperformers based on recent spinoffs and separateions. Plus, a busy week of deals and an investor question about covered call ETFs Tyler Crowe, Matt Frankel, and Lou Whiteman discuss: - Digital Realty buying data centers - Building materials industry consolidation - Keeping track of what assets went where at Honeywell - Recent successes (and failures) with spinoffs - Mailbag: When to covered call index ETFs work? Companies discussed: DLR, BX, CSL, OC, MLM, BLD, QXO, ON, SYNA, HON, HONA, SOLS, QNT, GE, GEV, GEHC, RTX, CARR, OTIS, DOW, DD, CTVA, CMCSA, BRK-B, SPYI, QQQI, CHPY, BTCI Host: Tyler Crowe Guests: Matt Frankel, Lou Whiteman Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	We're talking matchups and breakups today on Motley Fool Hidden Gems Investing.
0:07.0	Welcome to Motley Fool Hidden Gems Investing. I'm your host, Tyler Crowe, and today I'm joined by longtime full contributors, Matt Frankel, and Lou Whiteman.
0:17.0	So we just got to the end of the Honeywell kind of breakup phase that's been going on for a year. So we're going to dive deep into that today. And of course, we're also going to hit the mailbag like we always do. But we wanted to start today with, you know, it's July 4th weekend coming up. And apparently Wall Street bankers want to clear their plates before the July 4th weekend. Because there's been a ton of deals that have
0:37.5	happened in the last couple of days. Yesterday, John Kwas, host and company, they covered the Comcast split and the Rocket Lab acquisition. Matt, I think you were part of that discussion there. And since then, we've seen even more deals come through. I've read four of them within the past 24 hours. And what I want to do today is we're going to go through all four of them.
0:55.9	And then I want you guys to tell me which one of these do you actually like the most?
0:59.7	We had digital realty buying data centers from Blackstone for about $3.5 billion.
1:04.6	We have Carlisle companies, a building supply company, doing an unsolicited bid for Owens Corning.
1:10.7	So not done yet, but looks like something's
1:12.8	going to happen. You've got a materials company, Martin Marietta Minerals, buying a limestone
1:18.8	supplier for $13.5 billion. And then on semiconductor is buying synaptics for about $7 billion.
1:25.9	So, Matt, I feel like somebody who loves REITS is going to go in a certain direction here.
1:32.2	Am I right?
1:33.2	Yeah, I mean, I like playing the AI boom with stocks that I understand.
1:36.9	Like, you know, the Picks and Jevels plays, the infrastructure plays like the Atta Center REITs.
1:41.4	Digital Realty has been probably one of the top two or three longest
1:45.5	running dividend stocks in my portfolio. The deal is interesting to me. The stock is down
1:52.1	5% after the deal. The company is purchasing Blackstone's, you know, roughly two-thirds
1:58.0	interests when you combine all of them in three data centers in
2:01.4	Northern Virginia for $3.5 billion. One point two billion is coming in cash. The other $2.3 billion
2:08.1	is issuing new shares. They're going to need about $1.4 billion of additional CAPEX to complete
2:16.0	the development of these. None of them are occupied
2:17.8	or operational yet. And digital realty is assuming some debt as part of the deal as well.
	...

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