Cummins Inc
designs, manufactures, distributes and services diesel engines for heavy, medium and light duty trucks, autos,
buses as well as industrial, electric power generation and engine related
components markets. The company has
grown profits and dividends at a 12-20% rate over the last ten years earning a
20%+ return on equity. Like most heavy
industrial firms, CMI earnings can be
somewhat volatile. However, it should continue to grow at an above average
pace as a result of:
(1) it is positioned to benefit from trends in
emission standards, fuel economy and increased demand for electricity,
(2) introduction of new products,
(3) an aggressive stock buy back program.
Negatives:
(1) economic weakness has a major impact on
sales,
(2) it expects flat sales in 2013.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2003
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin Rating
Chart
Note:
CMI stock made great initial progress off
its March 2009 low, quickly surpassing the downtrend off its March 2008 high
(straight red line) and the November 2008 trading high (green line). Long term, the stock is in an uptrend (blue
lines). Intermediate term, it is in a
trading range (purple lines). The wiggly
red line is the 50 day moving average.
The Aggressive Growth Portfolio owns a 50% in CMI . The stock is on the Aggressive Growth Buy
List; the lower boundary of its Sell Half
Range
4/13
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