http://stockmarketbeat.com/blog1/2006/07/27/rockwell-automation-will-investors-ever-learn/ Our beat: The stock market. Our job: Beat it. Tue, 07 Oct 2008 23:17:46 +0000 http://wordpress.org/?v=2.2.1 http://stockmarketbeat.com/blog1/2006/07/27/rockwell-automation-will-investors-ever-learn/#comment-23157 ROK: Rockwell Shares Well Rocked by CFO Departure - Stock Market Beat - Our beat is the stock market. Our job is to beat it. Thu, 05 Apr 2007 19:34:02 +0000 http://stockmarketbeat.com/blog1/2006/07/27/rockwell-automation-will-investors-ever-learn/#comment-23157 [...] No new position named, and there can’t be much of one if Gelly has time available to advise his former employer. It is also somewhat uncomfortable that Gelly is leaving just after the company received $1.7 billion for the sale of a large division. That money needs to be put to use, and typically the CFO is instrumental in such decisions. At the time the unit was sold, we said “The unit comprised just over 18% of the company’s sales in FY06 but only 4% of segment operating income. The sale values it at 15% of the company’s enterprise value, which seems to us like a solid price.” We still believe that, as we have noted before, if ever there was an industry poised to do well in today’s economic environment, Rockwell (factory automation) is in it. However, the stock has sinced bounced along going basically nowhere, and today’s news doesn’t offer much comfort. [...] […] No new position named, and there can’t be much of one if Gelly has time available to advise his former employer. It is also somewhat uncomfortable that Gelly is leaving just after the company received $1.7 billion for the sale of a large division. That money needs to be put to use, and typically the CFO is instrumental in such decisions. At the time the unit was sold, we said “The unit comprised just over 18% of the company’s sales in FY06 but only 4% of segment operating income. The sale values it at 15% of the company’s enterprise value, which seems to us like a solid price.” We still believe that, as we have noted before, if ever there was an industry poised to do well in today’s economic environment, Rockwell (factory automation) is in it. However, the stock has sinced bounced along going basically nowhere, and today’s news doesn’t offer much comfort. […]

]]> http://stockmarketbeat.com/blog1/2006/07/27/rockwell-automation-will-investors-ever-learn/#comment-527 Trent Fri, 28 Jul 2006 18:59:56 +0000 http://stockmarketbeat.com/blog1/2006/07/27/rockwell-automation-will-investors-ever-learn/#comment-527 Part of it is playing catch-up with the overall market. While 16x earnings used to be cheap, now it is just in line. The other part of it is people with short memories and itchy trigger fingers looking for any sign things are wrong. If you own the stock you just have to be prepared for this kind of sell-off (or wait for one to give you your buy entry) and then follow the big picture drivers of the business - durable goods orders, GDP etc. Rockwell even does a great job in their 10K of breaking out the economic factors that influence their business. Part of it is playing catch-up with the overall market. While 16x earnings used to be cheap, now it is just in line. The other part of it is people with short memories and itchy trigger fingers looking for any sign things are wrong. If you own the stock you just have to be prepared for this kind of sell-off (or wait for one to give you your buy entry) and then follow the big picture drivers of the business - durable goods orders, GDP etc. Rockwell even does a great job in their 10K of breaking out the economic factors that influence their business.

]]> http://stockmarketbeat.com/blog1/2006/07/27/rockwell-automation-will-investors-ever-learn/#comment-524 Mark Peot Fri, 28 Jul 2006 15:10:01 +0000 http://stockmarketbeat.com/blog1/2006/07/27/rockwell-automation-will-investors-ever-learn/#comment-524 I agree. Rockwell Automation has performed stunningly well this year (estimated earnings up > 22% over last year) and is promising to perform well next year (projecting > 18%). Despite putting up respectable revenue and earnings numbers, the stock has lost almost 10% of its value this week and over a fifth of its value from the peak this year. I am baffled. How can a company that is doing so well lose so much value? I agree. Rockwell Automation has performed stunningly well this year (estimated earnings up > 22% over last year) and is promising to perform well next year (projecting > 18%). Despite putting up respectable revenue and earnings numbers, the stock has lost almost 10% of its value this week and over a fifth of its value from the peak this year. I am baffled. How can a company that is doing so well lose so much value?

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