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Today I initiated a seed position in ROK : Rockwell Automation
Quote:It is a provider of industrial automation power, control and information solutions.
You won't find ROK on the CCC list, but it should be on the Challengers list next year. I expect at least a 10% dividend bump before the New Year http://www.nasdaq.com/symbol/rok/dividend-history
Quote:Jeremie Capron - CLSA
Okay, that's very helpful. Thank you. And Ted, as we've gone through the share buybacks, so you're running a little ahead of the initial plan, and you've got a new authorization out there. Should we expect the buybacks to continue well into next year?
Theodore D. Crandall - Chief Financial Officer
I think the expectation should be that we will continue to exhaust our free cash flow after acquisition spending on dividend and share repurchase. And so we will do that this year. We've may run a little but ahead of that depending on how cash flow comes in Q4 and depending on what we spend in Q4, but I think that's what your expectation should be going forward.
Jeremie Capron - CLSA
All right. That's very clear. Thank you very much.
Some of the bullets points of why I purchased:
77% of shares held by Institutional + Mutual Fund Owners
0.4 Debt / Equity
Last decade outstanding shares have reduced from 189MM to 140MM
PE < 20
Payout Ratio ~40%
Next year EPS bump of ~19%
10 year ROIC average of 21.8% vs a WACC of 10.84%
Current yield 2.1%. Expect ~12% bump before 2015
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(11-05-2014, 10:19 AM)rapidacid Wrote: Today I initiated a seed position in ROK : Rockwell Automation
Quote:It is a provider of industrial automation power, control and information solutions.
You won't find ROK on the CCC list, but it should be on the Challengers list next year. I expect at least a 10% dividend bump before the New Year http://www.nasdaq.com/symbol/rok/dividend-history
Quote:Jeremie Capron - CLSA
Okay, that's very helpful. Thank you. And Ted, as we've gone through the share buybacks, so you're running a little ahead of the initial plan, and you've got a new authorization out there. Should we expect the buybacks to continue well into next year?
Theodore D. Crandall - Chief Financial Officer
I think the expectation should be that we will continue to exhaust our free cash flow after acquisition spending on dividend and share repurchase. And so we will do that this year. We've may run a little but ahead of that depending on how cash flow comes in Q4 and depending on what we spend in Q4, but I think that's what your expectation should be going forward.
Jeremie Capron - CLSA
All right. That's very clear. Thank you very much.
Some of the bullets points of why I purchased:
77% of shares held by Institutional + Mutual Fund Owners
0.4 Debt / Equity
Last decade outstanding shares have reduced from 189MM to 140MM
PE < 20
Payout Ratio ~40%
Next year EPS bump of ~19%
10 year ROIC average of 21.8% vs a WACC of 10.84%
Current yield 2.1%. Expect ~12% bump before 2015
Looks interesting, have to like the growth its seen since the recession.
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Nice add, I looked at ROK a while ago but it didn't jump out at me among the field of other industrials like ETN, UTX, PNR, etc., and it appears to trade at a slight premium. What made you pick this one?
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11-05-2014, 12:02 PM
(This post was last modified: 11-05-2014, 12:03 PM by rapidacid.)
(11-05-2014, 10:40 AM)earthtodan Wrote: Nice add, I looked at ROK a while ago but it didn't jump out at me among the field of other industrials like ETN, UTX, PNR, etc., and it appears to trade at a slight premium. What made you pick this one?
ETN : I sold my position in ETN in August. I don't keep a trade diary or notes ( I really should ) so I'm not sure why I sold. Most of the metrics look pretty good except for rising share count, rising EV / EBITDA and a not great ROIC
UTX : I already have a seed position in UTX and I didn't add to it because the near term growth looks a bit anemic
PNR : I don't think I've ever looked at PNR. Perhaps the lower current yield always removed it from my screening. What happened in the last 5 years to make the share count double as well as the EPS? Current EPS = $1.26 and next year EST EPS of $4.44 ... is that right?
(11-05-2014, 10:19 AM)rapidacid Wrote: Current yield 2.1%. Expect ~12% bump before 2015
No joke, this came across the wire 5m ago:
Quote:Rockwell Automation declares $0.65 dividend • 11:56 AM
Rockwell Automation (NYSE:ROK) declares $0.65/share quarterly dividend, 12.1% increase from prior dividend of $0.58.
Forward yield 2.36%
Payable Dec. 10; for shareholders of record Nov. 17; ex-div Nov. 13.
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Ooooh, rapidacid, you must have ESPN.  
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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Now if only simple math applied to lottery numbers ....
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11-06-2014, 01:50 PM
(This post was last modified: 11-06-2014, 02:23 PM by rapidacid.)
I increased my QCOM holdings by 30% at $68.43 today
I also increased my MSFT holdings by 30% today
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Increased my BNS holding just now by 60%.
Increased my UL holdings by 31 shares yesterday.
Initiated a position in CVX.
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Purchased one partial position in OXY today. Sold one partial position in JNJ today.
OXY - On March 24, 2014 I sold one partial position of OXY @ $97.13 (the basis for that partial position was $88.85, purchased on 2/7/14 which equaled approximately 10% gain in 3 months). Today I purchased the partial position back at $89.46 (includes commission) which is $7.67/share less that what I sold that partial position for on 4/24/14. I retain several partial positionis in OXY, and it is a long term holding in my portfolio.
JNJ - Sold one partial position today at $107.64. I bought this partial position of JNJ on 10/15/14 @ $97.92. Profit from sale today approx = 10% for one month. I retain several partial positionis in JNJ, and it is a long term holding in my portfolio.
M$$I
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Doubled my DB position at $29.89 and immediately sold $30 April calls for $2.20 or a little over 7%. The bank pays its annual dividend in May, so I figure that if the shares don't get called, I'll be able to sell a fresh batch plus will have a good chance to collect the dividend. If they are called, well netting over 7% for under six months exposure is enough to make me quite happy. My first shares of DB were bought on 10/20 for $30.90 and had April $32 calls sold for $2.05. Would really love for those shares to get called!
Alex
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