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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (44970)10/28/2011 10:31:09 AM
From: E_K_S  Read Replies (2) of 78670
 
Whirlpool Corp. (WHR) - Stock down 12% on the news.

Whirpool shares sink 12% on lower outlook
marketwatch.com

From the article:"...Whirlpool Corp. /quotes/zigman/246389/quotes/nls/whr WHR -11.99% shares fell 12% early Friday after the home appliance manufacturer slashed its earnings outlook, hurt by slowing sales in emerging markets. The company also announced that it will cut more than 5,000 jobs, or about 10% of its workforce, due to higher costs and weaker demand..."

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Still a bit too much debt for me especially in this fickle economy. I would like $1.2B less debt or $200M more sale per year. The forward PE is attractive at 6 but I doubt the analyst are correct especially with the company's gloomy outlook. The one positive is their dividend is now yielding 3.5% but I doubt there will be any increases in the near future.

I will pass on this one. It looks like the company is still digesting their recent Maytag acquisition.

EKS
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