Equities Focus

Global Industrial Conglomerate Honeywell announced the release of an early-stage quantum computer, with JPM Morgan Chase intended to be the first user. Honeywell aims to be the market leader for the nascent quantum computing market, taking on Alphabet and Microsoft’s products. The computer is set for release in the next 3 months; Honeywell also acquired 2 quantum computer companies. Shares rose 8.2% in the last 52 weeks but fell 6.4% in the past 30 days.

Following sustained multi-year investments into new products, salesforce additions and channel development, Johnson Controls International, who offer building climate controls, is showing organic growth acceleration. This follows cost synergy gains from their merger with Tyco, and are expected to maximise the $900M in cost synergies in 2020. Organic sales growth was 5% in 2019 above the 3.6% 3-year average. Stocks rose 6.4% in the last 52 weeks.

TOMI’s SteraMist product has been cleared for use in Seoul City Metropolitan Transit, and will become the primary decontamination technology on the public infrastructure. The product will be key in the efforts to control the spread of COVID-19 through cross-contamination in public spaces. GD Sciences will be the distributor of SteraMist in South Korea. The stock moved 531% in the last 52 weeks and gained 218% in the past 30 days.

CVS faces challenges from Walmart after announcing their low price alternative clinical service. The new Walmart Health Centres can offer budget medical check ups, teeth cleaning services and counselling, all via an online booking or walk in. Walmart intends to break into the United States large health market, and have made their clinics their top priority. As a result CVS stocks are down 13% in the past 30 days, but a 1.8% increase over the last 52 weeks.

Kier has calmed investors’ nerves after reporting a 14% rise in 1H revenues. The British construction company’s value is a fifth of what it used to be a year ago. However, reducing their half year losses by £8.1m and improving operating margins to 2.5% shows promise of a turn around. Kier must control their debt levels and complete its divestiture and cost reduction programmes. There will be no dividends for FY20. The stock declined 75% in the past 52 weeks and rose 20% in the last 30 days.