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Stocks J / Johnson Controls, Inc.


Subject:  Re: JCI overpriced? Date:  12/21/2001  11:09 AM
Author:  dadew Number:  401 of 498

"Just started a DRIP with JCI.

Noticed that the last post indicated that they thought JCI has seen its run up (and will not go further?)

I bought this for a long term project. DRIPing $50 a month.

Anybody think that the price is too high?

I thought that this was a long term, buy and hold type, good DRIP type stock. As in Cyclical stock where I would be buying up and down prices.


I have been dripping with JCI for a number of years now and it is one of my strongest performers. The previous poster that you mentioned was probably not a dripper, but someone using online brokerages, a live broker, or something like a BuyandHold. Most people fit in that mold since dripping is not a well-known or well-understood investment tool.

Over the years, JCI usually has a weak fall in that its share price drops noticeably during the last three months of the year. It usually has a strong spring and summer. This quarter, JCI bucked the trend. The company is bouncing fairly close to a stock split least it has done so in previous years.

The company has also been actively buying smaller companies and improving its global positioning. Is the price currently too high? My best guess is that it is not. This spring will tell. If JCI can maintain its 80s range prices...and build upon that...

As of late, JCI has not been acting like a cyclical stock...more of a smaller conglomerate stock like GE. One thing I think I can say safely...this is a fantastic long-term holding for any portfolio. I have at least a twenty-five year window with this stock...mayhaps longer if God blesses me with good health.

I hope this has proven helpful to you.

For the record, JCI makes up 9.15% of my 14 member stock portfolio.


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