Cummins, Inc. (NYSE:CMI)

Consistent performer, now featured in Chysler trucks. Deisel demand--especially biodeisel--will only increase in future.

DR indication 3/18/07

New expanding markets world wide

Cummings

even with the run-up there is still potential here.

Check out:
http://www.thestreet.com/_yahoo/newsanalysis/investing/10340683_4.html

As leading diesel engine maker CMI will benefit from trend to more efficient transportation; filtratration products will also be in demand.

This stock has been riding the coattails of the sector and is due for a pullback.
Their sales were artificially high last quarter because of new regs going into effect for 2007.

This is worth at least 150 even with the recent run up.

best engine manufacturer in the world.....selling less than enterprise value....diversifying business for all types of commercial and consumer engines...long term value with dividends and earnings.

Profit

This stock was $19 only a few years ago with the same basic business, products, prospects. They are at the height of a multi-year cycle, and when Cummins cycle ends, it ends brutally. Being a small midwestern town company, they don't cut fat very quickly, which means that when this falls, it will fall hard and I think you could see the loss of 50-70% of its value. That looks like it is going to happen in the next couple years. Good company, great products, horrible time in the natural, proven cycle to be buying or holding. Get out and enjoy the gains.

PE sub 9, good CF/P, current ratio[ solid for the industry. It has room to raise it's div as well

top quality diesel ahead on emission standards global footprint in growing world economy

The only major diesel manufacturer to be able to meet new environmental standards effectively. The competitors are having major issues and many customers will turn to Cummins. Plus, all engines are already being sold like hot cakes with the company unable to fullfil all demand! Sold out is a good sign. They are even putting quotas on the number of engines they can sell to China so they don't neglect their other markets.

New products meet the EPA Tier 3 emissions-capable

High quality. Beats Caterpillar at the customer level. Serving the niche of oil & gas drilling rig builders aggressively and reliably. Senior management directly involved in customer interface.

china is a new tremendous market for anything diesel

Good solid company, undervalued.

An insanely low P/E (I calculate the fair value, even at anemic growth rate estimates, to be twice or more its current market cap), a growing dividend, more green tech coming, and new contracts in China. . . this one is going to be huge.