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hello

i have been looking at dripping jci for a while now. i was wondering if there is anyone out there who thinks jci is too expensive now? also, some fan feedback touting the co. would be welcome info.

thanks all
*paperkut
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Although by my style of investing, JCI is pretty high in the channel at present and I have considered selling it, I first got it as a distribution from Hoover Universal in January, 1980. It certainly has had consistent steady growth (Value Line - Growth Persistence = 100) with predicable earnings (V.L. = 95) and has a safety rating of 2, I am looking elsewhere (e.g. GE, JNJ, WM, GIS) for candidates. However, my gain to date with JCI has been 3530% for that 24 years. (Not as good as my 46,994% on Gap, Inc. during the same period, but good none the less.)

With a steady investment program like a drip, it seems to me that it makes far less difference WHEN you buy it than for me, but I do think JNI is an excellent company and I may hold mine for a while longer.

Good luck and good investing, Gapfan
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Correction needed in previous post:

<<<<but I do think JNI is an excellent company >>>>

should be JCI (Johnson Controls).

Sorry for the typo, Gapfan
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I echo gapfan.

jci is consistent performer. They always look expencsive but they always seem to deliver. I've dripped them since 96.

bat
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"It certainly has had consistent steady growth (Value Line - Growth Persistence = 100) with predicable earnings (V.L. = 95) and has a safety rating of 2"

my new year's resolution is to become a better fool, and when wiser ones launch into bits of wisdom which i do not understand, that i politely ask them to explain- or point me in the right direction. which is why i must ask you if it is at all possible for you to explain the above for me- or stuff i can read up on to translate it.

thanks so much for your input! *paperkut
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Paperkut, happy to answer your question:

I started investing via an Investment Club. (I think you can read a bit about how they work here at the Motley Fool.) Later I found that much of the information used in clubs was available in a convenient form in Value Line reports, and you can become a bit familiar with them at:

http://www.valueline.com
Check under products and services.

Now for the question:
"It certainly has had consistent steady growth (Value Line - Growth Persistence = 100) with predicable earnings (V.L. = 95) and has a safety rating of 2"

Value Line (VL) covers roughly 1700 companies in their survey, and break them down into categories. Growth persistence for Johnson Industries is better than 95% of the total companies and thus gets the top ranking of 100. (That is not "faster" growth, but more "persistent" growth or steady growth.) The earnings predictability for JCI is better than 90% of the other companies so it is ranked at 95. (The divisions are in 5% increments.) The safety rating is 2 out of 5, where 1 is the highest safety (primarily financial strength).

Another comment, based on Investment club techniques. In those evaluations, a "channel" was determined for 10 years of stock data with a 5 year prediction period. The idea was to buy stocks in the bottom third of the channel, hold them if in the middle third, and consider selling if in the top third. If you do a 4 year or 5 year plot of JCI prices, drawing straight lines connecting the low prices and the high prices (parallel lines if you can conveniently) and see where JCI is now, you will find it pushing the top of the channel. I tend to invest by accumulating savings or buying a stock in the lower portion of an upward channel. (If using Value Line charts, I would buy when the price is well below the trend line if VL suggested recover from whatever problems are present with the specific company.

Drip investing follows the idea of "dollar cost averaging" which I support, along with long term buy and hold. Good luck with using the tools which are available here at the Fool. (My serious investing really started about 1973, some 15 years after my first investments.)

Gapfan :-)
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i cannot thank you enough! you should've seen the light bulb go off in my head as i read your post :)

*paperkut (who has been looking for an investment club in brooklyn for a good year now...)
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Thank you, Paperkut. I am glad to be able to help.

When you can spare $75 for a trial subscription to Value Line, I think it is an excellent investment, especially if you like to do your research at home. First, I learned a lot by looking at the charts and then reading the review about the company. The review is just one analyst's opinion, but I recognize that. Making notes on the sheets about what you think after reading the data gives you clues about your own thinking. Are you conservative or speculative? Which things are most important to you. Do you enjoy doing the research or not? When I started there was not enough money to invest much, and the "trial" was useful for years. If I got to read a review a couple years late, I could then look what happened since the review, for example go to a library and photocopy that page from a recent report. You can learn a lot about your interests and methods from that exercise.

Perhaps there are sources on-line that allow similar "simulation" of your investing style. There certainly are enough threads here at the Fool to help, so I cannot suggest the "best" way for you, but for me a hard copy and availability when I wanted it was important. (I am currently on a 2 year subscription to VL and purchased about 30 new stocks starting last January thru May. But I love to work with data and am retired now.)

I wish you good luck and good investing. I tend to favor individual stocks over funds if one can spare the time to do some research. It was the December 1979 issue of VL which "turned me on" to Gap, Inc. That issue suggested a 500% gain for the 3-5 year period (too optimistic I thought). I purchased some in January, more in small amounts until the last purchase in April 1980. (I believe that VL turned more negative by then, but I also had all I wanted at the time.) Guess what, 3-5 years later Gap had done better than expected. $5. invested then (1980) now provides dividends of $8.88 a year and large potential capitol gains. That one investment changed my future.

Gapfan :-)
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So, was the consensus that you should start your DRIP now because the price isn't coming down?
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