We're adding to our position in an industrial giant with a major catalyst nearing

We are buying 50 shares of Honeywell at roughly $224.67. Following the trade, Jim Cramer's Charitable Trust will own 440 shares of HON, increasing its weighting in the portfolio to 2.5% from 2.22%. We're picking up shares of Honeywell ahead of next week's spin off of its Aerospace business, which will be known as Honeywell Aerospace and trade on its own. We're buying back the 30 Honeywell shares we sold in late May at a higher price of $231, plus a little extra to get bigger into the breakup. As we wrote two weeks ago when we upgraded our Honeywell rating back to a buy-equivalent 1, we find the company's valuation quite attractive ahead of the upcoming separation, with the stock not getting enough credit for its higher-multiple Aerospace division. The remaining Honeywell Technologies division is a "show me" story, but we thought the upbeat investor day targets of 4% to 6% organic sales growth — paired with steady annual margin expansion and double-digit annual adjusted EPS growth — creates an investment case for a re-rating, a term for the stock eventually fetching a higher price-to-earnings multiple. We also see Honeywell as one of the key beneficiaries in the portfolio of a Middle East peace deal. Catalyst shipment sales from its Process Automation & Technology unit have been pushed out due to the conflict, so we expect the company to recapture those revenues (this business will stay with the remaining Honeywell Technologies). …