Emerson Radio

Emerson Radio (MSN) was founded in 1915 as Emerson Phonograph when the phonograph was the only electronic gizmo in town (other than the telegraph). Now they make all sorts of marvels and have a subsidiary in China. This is one company that has seen a lot of changes. Radio came along and put Emerson Phonograph into receivership. It was revived as Emerson Radio and Phonograph in 1924. The along came the Great Depression, but they introduced the "peewee" radio in 1932, bursting them out of obscurity. They sold some of the first TVs in 1947. "Phonograph" was finally dropped from their title in 1977. They were the first to make the clock radio and have patented SmartSet, making them so that they automatically reset to the correct date and time after any power interruption. Don't you just hate those flashing "12:00"s ? They seem to have a long history of morphing into success no matter what happens.

The stock is currently in an interesting condition having been beaten senseless by the Great Recession. The eps has indeed suffered, but if you look at the rest of the picture you see this:

Revenue hasn't gone away and cash flow from operations has climbed to all time highs producing a very cheap price/cash flow of 2.6! If the earnings follow the cash upward, the stock could break out nicely. Technically, that appears to be what is happening:

If you like the cup and handle, this is breaking one. I like the behavior over the February/March market event, no price or volume reaction - all the sellers had left. The volume is only very slowly creeping back, certainly no topping type of volume yet, just the start of a stair step climb pattern with the steps punctuated emphatically with volume. And the A/D has just broken a long slow downtrend line and looks pretty strong.