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Strategies & Market Trends : Value Investing

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From: Paul Senior8/4/2015 4:43:28 PM
2 Recommendations

Recommended By
ekimaa
Spekulatius

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EMR. Apparently another punk quarterly from Emerson Electric. Company has cut 2015 earnings estimate to about $4 per share. (Fiscal year ends in Sept.) IF that estimate holds and IF it's achieved, that would result in a p/e of $50/$4, or about 12.5x.

That is too low for the typical p/e this stalwart company has carried. Maybe though, just stalwart/reliable in the minds of us old-timers who remember this company in the 1970's as a multiple-decade dividend achiever and award-winner for management leadership. Those days may be gone now.

With the stock's drop it's moved off my watch list to a small tracking buy. I expect the stock to do better (show a higher p/e and maybe higher earnings) in next 1-2 years. Meanwhile a 3.6% dividend yield while waiting.

finance.yahoo.com
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