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Final
Segment #1: |
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'It's Electric' |
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Tuesday,
November 11, 2008 |
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Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
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EMR |
31.79 |
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Jim:
As the
market continues to
get the stuffing
knocked out of it...
there's one group of
stocks that are
indeed, as they go
down, actually
becoming more
attractive!... That
you actually have a
reason to buy,
beyond the standard
and meaningless,
"boy are stocks
cheap"... And those
are the
accidentally-high
yielding stocks.
Now I have become an
annoying broken
(record) about these
stocks, but that's
because they
represent safety,
not to mention
income, from their
dividends...
something you and I
understand... in one
of the most
difficult and
treacherous stock
markets we have ever
seen... One that, by
the way, hasn't had
an up month since
August, despite the
endless "buy, buy,
buy" we hear every
day.
I mean, we know we
can trust companies
that used to pay
puny dividends, and
only have high
yields now because
of the relentless
assaults on their
stock prices. These
are quite different,
for example, from
the
Allied Capital Corporation
(ALD)
call I got lost week
in the Lightning
Round, where I said
that a 32% dividend
is not safe. Of
course, they slashed
that dividend this
morning...
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Continued below...
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Wednesday,
October 22, 2008
(Cont'd from
above)...
Jim (cont'd):
So I've got a
new one...
I mean, all I do
is, I do these
screens
endlessly, where
I look at
stocks. I just
keep waiting for
them to go down,
and then I hit
you with the
ones that I do
the
homework
on and like.
A lot of them I
don't.
This one I do...
I've got an
accidental high
yielder that I
want to talk
about... and I
would have
mentioned it
yesterday but,
because we had a
gigantic rally
off of the
Chinese stimulus
package... it's
now come back
down to a point
where it's
yielding 4.1%,
and it looks
like to me a
great level to
start buying...
The stock is...
Emerson Electric (EMR)!...
An industrial
smokestack
company, with
its hands in
everything from
industrial
automation to
climate control
to, most
importantly,
process controls
that allow
businesses to
conserve energy,
and power
transmission
equipment...
They also do plain
old motors that
are used in tools
and appliances.
Obviously, that
business isn't
doing all that
well right now.
That's why the
stock's down for
heaven's sake.
EMR's businesses
don't necessarily
crater in a
recession, because
many of its
products help
other companies
save money, and do
you know this?...
I mean, this is a
great one... when
you go back and
look at recessions
and see how stocks
do... Do you know
that this one
actually went up
during the
recession of 1990
and 1991. It went
from $31 at the
beginning of 1990,
to $45 at the end
of 1991. I want to
be on that $31 end
of things.
This is a company
that, when you
hear one day that
things will get
better, this is
one you should
think about
buying...
So let's talk
about the bottom
line...
The bottom
line!:
I never dreamed
I'd see an
industrial like
Emerson Electric (EMR)
yielding 4.1% at
these levels. The
stock is worth
salivating over...
Take the safe
dividend on this
accidental high
yielder, because
it's one of the
few safe places to
hide your money in
this market. It
gives you a better
return than
certainly the
first national
bank of "Sealy" or
"Duxiana" or
"Sterns & Foster"
or anything they
sell at Sleepys
(referring to
hiding your money
in any
mattress)...
Read Jim's next Segment
here
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