I tend to think that we are in stock pickers market. That is, in this market, one can do better by selectively buying stocks rather than buying the broad indexes. If you are of that mindset, then perhaps consider Emerson Electric as a value play.
I had bought Emerson back in October (down 4% since then). As I am 6 months in to this stock, I spent some time looking at its current situation to see if I should still hold (I will). Since I did the research, I thought I would share my findings in case there is any interest.
Emerson has a PE of 11 and is paying a 4+% dividend. The dividend beats money in the bank. Its return on equity is 27%.
And while Emerson has been hit like just about everyone else, it has many businesses that I should think would do well under Washington's stimulus regime. Businesses like smart grid technology, heat pumps, process management systems and more.
I tend to think of Emerson as being somewhat like General Electric but without the GE Capital albatross around its neck.
Some links:
Some links:
Bloomberg: Emerson may acquire Rockwell Automation (usually negative for the acquiring company's stock)
Yes, I purchased EMR on March 9, 2009 at $24.75; Fri Apr 24 at $33.60. I expect EMR to be a longterm winner. This is a $40 to $50 share plus dividend paying stock.
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