Quote:It is a provider of industrial automation power, control and information solutions.

Quote:Jeremie Capron - CLSA
Okay, that's very helpful. Thank you. And Ted, as we've gone through the share buybacks, so you're running a little ahead of the initial plan, and you've got a new authorization out there. Should we expect the buybacks to continue well into next year?

Theodore D. Crandall - Chief Financial Officer
I think the expectation should be that we will continue to exhaust our free cash flow after acquisition spending on dividend and share repurchase. And so we will do that this year. We've may run a little but ahead of that depending on how cash flow comes in Q4 and depending on what we spend in Q4, but I think that's what your expectation should be going forward.

Jeremie Capron - CLSA
All right. That's very clear. Thank you very much.

(11-05-2014, 10:19 AM)rapidacid Wrote: Today I initiated a seed position in ROK : Rockwell Automation

Quote:It is a provider of industrial automation power, control and information solutions.

You won't find ROK on the CCC list, but it should be on the Challengers list next year. I expect at least a 10% dividend bump before the New Year http://www.nasdaq.com/symbol/rok/dividend-history

Quote:Jeremie Capron - CLSA
Okay, that's very helpful. Thank you. And Ted, as we've gone through the share buybacks, so you're running a little ahead of the initial plan, and you've got a new authorization out there. Should we expect the buybacks to continue well into next year?

Theodore D. Crandall - Chief Financial Officer
I think the expectation should be that we will continue to exhaust our free cash flow after acquisition spending on dividend and share repurchase. And so we will do that this year. We've may run a little but ahead of that depending on how cash flow comes in Q4 and depending on what we spend in Q4, but I think that's what your expectation should be going forward.

Jeremie Capron - CLSA
All right. That's very clear. Thank you very much.

Some of the bullets points of why I purchased:

77% of shares held by Institutional + Mutual Fund Owners
0.4 Debt / Equity
Last decade outstanding shares have reduced from 189MM to 140MM
PE < 20
Payout Ratio ~40%
Next year EPS bump of ~19%
10 year ROIC average of 21.8% vs a WACC of 10.84%
Current yield 2.1%. Expect ~12% bump before 2015

(11-05-2014, 10:40 AM)earthtodan Wrote: Nice add, I looked at ROK a while ago but it didn't jump out at me among the field of other industrials like ETN, UTX, PNR, etc., and it appears to trade at a slight premium. What made you pick this one?

(11-05-2014, 10:19 AM)rapidacid Wrote: Current yield 2.1%. Expect ~12% bump before 2015

Quote:Rockwell Automation declares $0.65 dividend • 11:56 AM
Rockwell Automation (NYSE:ROK) declares $0.65/share quarterly dividend, 12.1% increase from prior dividend of $0.58.
Forward yield 2.36%
Payable Dec. 10; for shareholders of record Nov. 17; ex-div Nov. 13.