Cummins (CMI)

[Kerim]

CMI is taking a beating today. Yield is up to 4.2 percent. I don't have a position, but this might be the time to start one. Anybody jumping in?

[benjamen]

CMI is going to take a beating in the short term, but should be a good long term investment. I bought at $100 and will average down if it drops below $90.

[Dividendsrule]

I think because of the specialty quality of this company, I have kept my position smaller than usual. So I am comfortably holding as Cummins engines are known in the industry to be the best, but personally I don't feel the dire need to add to my position right now.

[rapidacid]

CMI's dividend payment date happened to be today and since I'm DRIPping I consider myself lucky to be getting a temporary 8% dividend hike

[ronn38]

I'm going in at $90

[ChadR]

Great start to the forum Brendakr.

[crimsonghost747]

(12-06-2015, 11:13 AM)ronn38 Wrote: I'm going in at $90

looks like you got lucky

[Main Street Stock Investor]

Bought more CMI yesterday. CMI is 1.67% of portfolio. Position basis is now $79/share. Yield on Basis = 4.94%

Jefferson Research and evaDimensions have a buy rating on CMI.

M$$I

[benjamen]

CMI is down in the 85$ range and yield is over 4.5%, so I picked up another batch.

[Kerim]

Been taking a hard look at CMI the past few days and am very tempted to open a position, but an wary of increasing my exposure to cyclicals. I know, I know, my time horizon should make that a small concern, but I am nonetheless hesitant.

It feels like it has been a really long time since I've been able to pick up shares in any sleep-like-a-baby consumer staples companies at reasonable prices. I know that you've got to take what the market is offering, and right now it is offering CMI. But it is not feeling like a no-brainer. Seems like lots of scenarios could send the share price even lower.

Sorry for the hand-wringing. Am I over-thinking it?

[navyasw02]

(01-06-2016, 03:42 PM)Kerim Wrote: Been taking a hard look at CMI the past few days and am very tempted to open a position, but an wary of increasing my exposure to cyclicals. I know, I know, my time horizon should make that a small concern, but I am nonetheless hesitant.

It feels like it has been a really long time since I've been able to pick up shares in any sleep-like-a-baby consumer staples companies at reasonable prices. I know that you've got to take what the market is offering, and right now it is offering CMI. But it is not feeling like a no-brainer. Seems like lots of scenarios could send the share price even lower.

Sorry for the hand-wringing. Am I over-thinking it?

I'm wrestling with the same thing.  I'm going to wait a bit, it wont shoot back up to the $140 range anytime soon, so there's no immediate rush for me.  I'm ok with not buying at the bottom.

[benjamen]

I don't understand the bear thesis to CMI.

P/E: 9.5
Yield: 4.4%
Payout ratio: 43%
Even if the small forecasted cyclical drop in earning happens next year happens, you are looking at a payout ratio of 50-55%
No massive debt burden