David BurrowsEmerson ElectricEMRDON'T BUYJul 09, 2015

He sold after EMR launched a hostile takeover, but he missed out. His mistake.

Now, it's working. Didn't like the hostile takeover, but they've since fixed that. Are tied to data centres.

EMR has a total return of 33% over the last year and forward price-to-earnings ratio is decent, however not low at 20.8x. EMR also pays a small yield of 1.84%. Revenue growth has been modest over the last few years, however, margins have expanded nicely and most recent earnings were very strong. The balance sheet also looks OK with plenty of cash despite highly leveraged. We think EMR is a good name and forecasts predict a strong 2024. It appears to be quite a stable business, generating high cash flows and returns capital to shareholders well through the dividend and buybacks.
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It reports next week. Happy that it topped $100. But a lot of industrials are lagging because of fears over an economic slowdown. This remains a core holding for him.

They bought a company that screwed up their business, but is now past that and is now fine.

Well-run. Maybe buy it during this pullback and she is certainly watching it. The U.S. has picked up oil demand, so Emerson's orders have grown.

Owned it a few years ago but sold it. They are seeing good growth. A very well managed industrial company. She would probably not buy it here. They had a strong quarter and upped their guidance. She would wait for weakness.

He likes it and holds it here. Since June this cyclical wave came in and cheaper stocks benefited from a growth economy and did well. You want to focus on cheaper stocks that are more industrial and this stock looks good. They are poised to benefit from the ‘Buy America’ trend Trump is trying to instigate.