Eaton is definitely not overvalued. Its latest reported earnings were $.04 per share below analysts expectations. That represents just 2.5%. The market over reacted and the stock dropped 30%. It hit a new 52 week low.
Yesterday the stock refused to go any lower. Today, while all of the stock markets took a dive -- big time, ETN continued to crawl upward.
ETN has a goal of becoming a $10 Billion company around the year 2000. I don't think it will grow $5 Billion in the last month of 1999. I think now is the time to buy! This global, diversified, well managed company is destined to make $major$ acquisitions between now and then. Now is the time to buy! At a price earnings ratio of only 10, either you buy the stock or somebody else will. If ETN is acquired, who is going to benefit? The people who bought the stock while it was low will benefit. If ETN is not acquired, who is going to benefit over the next few years? The people who bought the stock while it was low will benefit.
Buy now! |
