Rockwell Automation (ROK)

Fundamentals will catch up with this company eventually. Forward P/E 28.69

I like the ROIC, strong balance sheet and have liked actions taken by management. The company competes against much larger companies and faces risks due to this but the company still appears to be well positioned. Although lower cap ex for its customers will hamper near term results these customers can't put off these expenses indefinately as they are essential to their business. I picked it as it was the only pure play within its industry. Although I haven't pulled the trigger in real life on this one, it stays on my radar.

With the emergence of the global economy, this company is poised to become a market leader in industrial automation and control.

2009 World's Most Ethical Companies
http://ethisphere.com/wme2009/

Pretty good bank, but I think the industry is trending down

Good business, good price. Will outperform with recovery.

just another value based water bid also IR LAYN MLI

Their headquarters has the world's largest four faced clock! (Don't know what that has to do with investing, but still...)

http://en.wikipedia.org/wiki/Allen-Bradley_Clock_Tower

^The Proof^

This CAPS account is tracking the 200 highest yielding S&P stocks.

High margin business model, a lot of cash, dominant in the US but expanding globally, ripe for a buyout, market cap is currently about 1 times annual revenue

I smell a buyout. Really good profit margins, lots of cash on hand, near 52 week low, relatively small, and a proven brand all adds up to a takeover target to me.

Even if not, the above rationale is enough for me to take a good look. This is a good buy.

over reaction

There is a possible resistance level at 60 dollars, but over the past two years, the company has been pretty steadily valued in the 60-70 dollar range. There are nice little upticks forming in the last week or so as well, so this could easily reach 60 next week. Then we watch how it behaves at resistance.

$70+/share

ROK provides factory automation. That is always useful, and ROK's high ROA and ROE show it is competent. Sales growth is slow. Stock price varied a lot over the last 3 years, up and down with flat trend. Stock price is relatively low now, so it seems an auspicious time to buy.

Long-term growth of your investment will be by reinvesting the 2.1% dividend. This is more effective in a tax-deferred account. The rest of the earnings are spent on capital equipment. Total equity has declined steadily for 10 years, however; so new needs for capital equipment apparently exceed absolute depreciation of existing capital equipment. So why doesn't total equity increase?

First impression is that ROK is a bottomless pit for capital. Further study reveals the declining equity, but no explanation. ROK looks dangerous.

The company is a strong financial position to grow profitably. The change of CEO will definetly invigorate management to continue with satisfactory results. By focusing in controlling opex, this company can grow profits beyond wall street projections. I believe the stock will grow consistently for the next 12 months.

aviation navigation technology for commercial and defense applications....value below 200mda pricing....is still in downtrend....long term value

Another automation company to leave in my portfolio for a few decades.

More attractive than Danaher.