Market Advance Gives Another Opportunity To Sell Extended-Share-Price Stocks

Currently, sales growth is 0.2% which is low in the record of the company and lower than last quarter.

The company is recording a high and falling Gross Profit. Gross Profit margin has been 71% correlated with the share price with a one-quarter lead. SG&A expenses are low in the record of the company and rising. That implies that the company has limited scope for further cost containment and rising costs are slowing the EBITDA growth rate relative to sales. Lower gross margins and higher SG&A expenses are producing a deceleration in EBITDA relative to sales which has been 67% correlated with the share price.

The current indicated annual dividend produces a yield of 2.7%. Five-year average dividend growth is 9.0%. Current trailing operating cash-flow coverage of the dividend is 2.6 times. However, the shares are trading at upper-end of the volatility range in a 30-month falling relative share price trend. The current extended share price provides a good opportunity to sell the shares of this decelerating company.

The more stable the pot appears, the better the attributes. Green and gold are good. Red is bad and the more intense the red the more urgent the call to action.

 

ROK

 

ROK

 

Rockwell Automation

 

 

Rockwell Automation

 


Pierre Raymond is a 25-year veteran of the Financial Services industry. Driven by his passion for financial technology he has transitioned from being a quantitative stock picker, to an award-winning hedge fund manager, credit risk manager to currently a multipurpose risk IT banking consultant. Pierre is the cofounder of Global Equity Analytics & Research Services LLC (GEARS) and a current partner at OTOS Wealth Systems Inc.

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