YOKEY - Emerson Bracing For A Slowdown And Considering Its Options
Back in May I thought that Emerson (EMR) looked undervalued, as I thought the Street was underestimating the full-cycle potential of the process automation business (particularly its petrochemical leverage), as well as the Climate segment. Since then, the shares have roughly doubled the return of the larger industrial sector, as cautious guidance from management has been offset by the involvement of an activist investor and investor enthusiasm for potential restructuring up to and including the break-up of the company.
I’m fairly indifferent about a break-up; I don’t think the Commercial and Residential Solutions