Rockwell Automation (NYSE:ROK)

This is my Peter Lynch pick. As an automation professional the vast majority of control system programmers consider Rockwells Logix platform the best PLC to program by far. Their Human Machine Interfaces (i.e. touchscreens, computer visualization software) is a good as any other I've used (different but not better). They have excellent support services for their products and a relatively easy to use website (compared to some of their competion in the automation field.

My recent purchase of ROK is due to its current price $59.47 compared to analysis fair estimate price (i.e. $80 to $90) and the fact it has a good dividend.

Trading well off 52 week highs after correction. Just reported another solid quarter. I think this is a value buy at this price and I am back in.

Victim of indiscriminate sell off. Will benefit from Asian growth.

Entire industrial systems sector is significantly oversold.

Historically a solid performer in industrial automation. Supports sustaining and retooling manufacturing industries. This will continue to do well as US economy recovers.

This pick for me fits into the "buy what you know". Rockwell Automation continues to develop it's process automation business at the expense of it's competitors and appears to be winning. Also, investment by major US consumer product goods(CPG) companies in the BRIC countries paired with renewed capital investment in the US bodes well for ROK. Completion of their SAP integration should start to net some fruit in the coming years as well.

Clients' needs will be unsatiable for at least the next 24 months.

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

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.