I received my annual report in the mail. What a disappointment. As a shareholder for years, the cover of the annual report was like an advertisement for the company. Printed on a thick cover, glossy and in full color, it reinforced the view that McDonalds was the quality fast food restaurant. This years copy has no cover, just page after page of black and white print. Although I realize what's contained inside the annual report is more important than the cover, a company earning billions of dollars, and paying its top executives millions of dollars, should put more thought into its annual report. If the top brass need an example of how to do it right, look at any annual report you put out from the last few years. Put it next to this years. Image counts. McDonalds, are you listening?
Today it was announced that industrial production in the U.S. declined last quarter for the first time since 2009. In addition, the dollar is rallying today. For EMR to be up today, is impressive, especially since EMR earlier warned that sales are slowing. Making sense of the gyrations of this stock, which often does the opposite of conventional thinking, is difficult.
Within the last week, large block sales of LGF have occurred. If LGF was set to announce a couple of quarters of good earnings, I believe these sales would have been postponed.
Now that EMR admitted sales are declining, the overpriced analyst community has finally projected that this years earnings will be below last years. What a joke. Had they figured this out six or three months ago and informed everyone, they might have deserved their pay. But to wait until the company speaks, and the stock price has declined, makes them less than irrelevant. They are a waste of money.
Perhaps a seven per cent decline in sales for the next quarter is actually better than an estimate for an eleven per cent decline that some may have been predicting.
EMR sales declined 10 per cent in Feb. The company is suggesting a 7 per cent decline in sales for the next quarter. Oil and the dollar are the culprits. 2015 will not be a stellar year for EMR.