Comments on: Warren Buffett Stock Picks: Eaton (ETN) http://www.oldschoolvalue.com/blog/stock-analysis/ill-pass-on-eaton-corp-etn-for-now/?source=rss Perform Stock Valuation Automatically Sat, 11 Feb 2012 19:05:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jae Jun http://www.oldschoolvalue.com/blog/stock-analysis/ill-pass-on-eaton-corp-etn-for-now/comment-page-1/#comment-1206 Jae Jun Wed, 07 Jan 2009 22:46:35 +0000 http://www.oldschoolvalue.com/blog/?p=191#comment-1206 I didnt know he made a guest appearance for Cramer lol. If Eaton shows that it is able to lower its debt smartly without taking on additional financing or diluting shares, I will definitely be looked at again. I didnt know he made a guest appearance for Cramer lol.

If Eaton shows that it is able to lower its debt smartly without taking on additional financing or diluting shares, I will definitely be looked at again.

]]> By: Dividend Tree http://www.oldschoolvalue.com/blog/stock-analysis/ill-pass-on-eaton-corp-etn-for-now/comment-page-1/#comment-1205 Dividend Tree Wed, 07 Jan 2009 21:57:43 +0000 http://www.oldschoolvalue.com/blog/?p=191#comment-1205 JJ: I looked at ETN last week (didn't know you had looked at it in Nov08). Qualitatively, I made the same conclusion: Although it appears to be a great company with good business model/products, it has become debt heavy. Growth is coming from acquisitions (which in turn is coming from debt). And guess what: CEO was on Cramerica yesterday, attempting to convince audience why/how ETN can sustain dividends. <abbr><em>Dividend Tree’s last blog post..<a href="http://feedproxy.google.com/~r/dividendtree/ObZp/~3/AAfEUUrINVw/is-buffett-dividend-growth-investor.html" rel="nofollow">Is Buffett a Dividend-Growth Investor?</a></abbr></em> JJ: I looked at ETN last week (didn’t know you had looked at it in Nov08). Qualitatively, I made the same conclusion: Although it appears to be a great company with good business model/products, it has become debt heavy. Growth is coming from acquisitions (which in turn is coming from debt). And guess what: CEO was on Cramerica yesterday, attempting to convince audience why/how ETN can sustain dividends.

Dividend Tree’s last blog post..Is Buffett a Dividend-Growth Investor?

]]> By: Jae Jun http://www.oldschoolvalue.com/blog/stock-analysis/ill-pass-on-eaton-corp-etn-for-now/comment-page-1/#comment-761 Jae Jun Thu, 20 Nov 2008 06:19:50 +0000 http://www.oldschoolvalue.com/blog/?p=191#comment-761 From the morningstar premium membership, ETN is rated 5 stars with a fair value of $81. Very similar to my $77 target. From the morningstar premium membership, ETN is rated 5 stars with a fair value of $81. Very similar to my $77 target.

]]> By: Jae Jun http://www.oldschoolvalue.com/blog/stock-analysis/ill-pass-on-eaton-corp-etn-for-now/comment-page-1/#comment-754 Jae Jun Wed, 19 Nov 2008 17:32:29 +0000 http://www.oldschoolvalue.com/blog/?p=191#comment-754 John, I checked my spreadsheet and it counted intangibles as well. Intangibles should be disregarded and it should be changed to Tangible Shareholder Equity. I'm making the modification now. Thanks for catching this. John,
I checked my spreadsheet and it counted intangibles as well.
Intangibles should be disregarded and it should be changed to Tangible Shareholder Equity.

I’m making the modification now. Thanks for catching this.

]]> By: John http://www.oldschoolvalue.com/blog/stock-analysis/ill-pass-on-eaton-corp-etn-for-now/comment-page-1/#comment-752 John Wed, 19 Nov 2008 15:15:03 +0000 http://www.oldschoolvalue.com/blog/?p=191#comment-752 When you calculate increase in book value, do you strip out the growth in intangible assets, such as goodwill? Thanks. When you calculate increase in book value, do you strip out the growth in intangible assets, such as goodwill? Thanks.

]]> By: Ryan http://www.oldschoolvalue.com/blog/stock-analysis/ill-pass-on-eaton-corp-etn-for-now/comment-page-1/#comment-748 Ryan Tue, 18 Nov 2008 18:16:35 +0000 http://www.oldschoolvalue.com/blog/?p=191#comment-748 Ignore my last comment. I see that you have them for sale. Ignore my last comment. I see that you have them for sale.

]]> By: Ryan http://www.oldschoolvalue.com/blog/stock-analysis/ill-pass-on-eaton-corp-etn-for-now/comment-page-1/#comment-747 Ryan Tue, 18 Nov 2008 17:59:22 +0000 http://www.oldschoolvalue.com/blog/?p=191#comment-747 I like the modification you did to the spreadsheet. Any chance you could send that to me? I like the modification you did to the spreadsheet. Any chance you could send that to me?

]]> By: Jae Jun http://www.oldschoolvalue.com/blog/stock-analysis/ill-pass-on-eaton-corp-etn-for-now/comment-page-1/#comment-746 Jae Jun Tue, 18 Nov 2008 17:29:50 +0000 http://www.oldschoolvalue.com/blog/?p=191#comment-746 I like the company and I agree that its a business which is needed, especially if growth in emerging countries picks up again later on. I'm just going to keep my eye out to see at what rate they pay back debt. However, it's good to see that management is seeking strategic acquisition directly related to its business rather than veering off into other industries. I like the company and I agree that its a business which is needed, especially if growth in emerging countries picks up again later on.

I’m just going to keep my eye out to see at what rate they pay back debt. However, it’s good to see that management is seeking strategic acquisition directly related to its business rather than veering off into other industries.

]]> By: Nurseb911 http://www.oldschoolvalue.com/blog/stock-analysis/ill-pass-on-eaton-corp-etn-for-now/comment-page-1/#comment-743 Nurseb911 Tue, 18 Nov 2008 00:00:17 +0000 http://www.oldschoolvalue.com/blog/?p=191#comment-743 This is a stock I've owned since late September at $57 and have added as recently as $45. Its a long-term holding in my US portfolio and a well diversified company. While debt has gone up significantly via acquisitions their book value growth has been stellar (one of my focal points as a value investor). The company's valuation has continued to weaken but if/when it dips down to $40 again I will be adding again to my position. It sells what the world needs and while that may have slowed currently I think over the next 15-20 years the company is well positioned for more growth organically & through smaller acquisitions. This is a stock I’ve owned since late September at $57 and have added as recently as $45. Its a long-term holding in my US portfolio and a well diversified company. While debt has gone up significantly via acquisitions their book value growth has been stellar (one of my focal points as a value investor).
The company’s valuation has continued to weaken but if/when it dips down to $40 again I will be adding again to my position. It sells what the world needs and while that may have slowed currently I think over the next 15-20 years the company is well positioned for more growth organically & through smaller acquisitions.

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