Quote:
Originally Posted by jcmn189
what is wrong with cmi it goes lower and lower?
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Jc - welcome on board..... In relation to CMI....currently, there is nothing wrong with the company. The downward price movement ticker is experiencing, is only in line with market decline and not a reflection, based on co's balance sheet; of a weak co from a business perspective..... If anything, the company is well positioned for continued growth.
Its earnings per share over the next several years are projected to grow at 14% clip, in line with the forecasted growth rate of the industry. $12 billion in revs for a net of $730 million. $80 million ahead in cash. Also company's net margin of 6% is in line with its industry. CMI is currently yielding 0.70%, above the industry’s average of 0.40%.... few months back they declared a dividend of $.25 cents per share which reflected a 39% yoy increase and it was paid on Nov 30, fiscal '07. Over the last 25 months, the company has repurchased apprx six million shares at a total cost of $500 million......good return on equity of almost 25%......Certainly, there is room for improvements in specific areas imo, for example their operating margin of only 7.50+/-% could use some stronger showing...but having said that including the company’s second stock split in fiscal '07 payable Jan 2, '08, . .... overall long-term again, we are talking growth ...also keep in mind only .64 peg with company’s financials continually improving..
as far as your broker's call goes...I didn't see any news out there on wires, that would prompt a $4 premium...by the way co. is reporting Feb 1.