I noticed that Vanguard Group is the largest institutional holder of Emerson stock. Then I found out that the company's 401k match is in company stock. Bet dollars to donuts that Vanguard Group administers the 401k plan. I wonder what the stock price would do if the match wasn't in company stock. Less regular buyers would almost certainly mean the price would drop. Sounds kind of Enron-ish. Guarantee the executives would cut more costs to prove to the shareholders that they are containing costs - they probably are going to do more cost cutting anyways because they doubled down on oil and gas with the Pentair purchase with the assumption that oil and gas prices would get back to $100. Who buys the stock other than the employees thru their 401k retirement savings?
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Just read the above and checked what Jim Cramer says about Emerson Electric. He's either gushing about Emerson Electric or calling Emerson Electric a dud. Does he own any of the shares or does he just need to talk about something? Does he want to take Emerson Electric to the prom or no?
Couple that with the stock alerts stating it's crossed whatever boundary in a bullish/bearish fashion just means a bunch of cyber and real lip flapping.
Noticed a news feed that they are buying more into the oil & gas business with an offer for the software outfit Paradigm for something like over $1B. Don't know if that's going to payoff with the never ending oversupply of oil. Another news feed stated that the amount of R&D spending by EMR gives that appearance that the company is likely milking the assets (follows the OP's post here).
If there's a clear major number of shareholders that are employees then why don't they vote to get the CEO out of the office or is the place top-to-bottom drinking the kool aid?
The other shareholders must be happy with the dividend w/o a stock price increase which must be the who the CEO is trying to keep happy. The CEO also has been throwing shares at his family members (revocable and nonrevocable trusts (guess which family member gets the revocable flavor)). Do you think they are voting to keep him as CEO?
If you bought the stock back in 2007 when it was at $61 at least you've enjoyed the 3% dividend so at least you have realized a return of 0.5% after inflation, congratulations.
I don't think I'd invest in GE (or most of the other industrials) but Schneider Electric and Rockwell have provided a much better return over the last 10 years with dividends (dividends for Schneider were most of the time). I assume that they have less exposure to oil & gas. Just seems like EMR is accelerating towards a cliff and not acting rationally.