Stay Away from the Bulk Shippers… for Now

November 9, 2008

If you have been an active investor in the markets, chances are you have come across the insane volatility surrounding the bulk shipping companies of the world. As an industrial-minded investor myself, it’s hard to look away when you see a fundamentally strong company 60% off its highs, and offering a 25% dividend yield (or more!). It might come as a bit of a shock when I say: stay away from the bulk shippers! Read more

Maintaining Stability Through Balance: United Technologies

November 1, 2008

So the overall market perception of the Industrial sector is that it is an extensively risky place to invest right now. In these volatile times many investors are flocking to the safe-havens offered by Healthcare and Consumer Staples. However, diversification is key to all sound portfolios and thus I am offering you a company that offers stability via balance in the Industrials sector: United Technologies Corporation [UTX: 48.45, -0.56 (-1.14%)]. Read more

Danaher: Is it Worth Paying a Premium?

October 1, 2008

In today’s catastrophic market everyone is looking for that one play that looks attractive with potential to outperform the market, yet will give them stability in this turbulence. But in this world, most of the greatest investments are worth paying a little more in order to obtain. Whether you are contemplating paying more for that luxury car or debating whether to buy a more expensive company in relation to its peers, it all comes down to one question: Is it worth paying a premium? Read more

Waste Services: Trash to Treasure

September 18, 2008

While the markets are in complete turmoil and the overall Industrial sector seems to be in a bearish environment, the waste services sub-industry has managed to stay afloat. The waste services industry is very simple: it is comprised of companies that collect, transfer, recycle, and dispose of garbage. It is an industry that has few competitors and very stable demand. Let’s face it; there will always be garbage that needs to be disposed. Read more

What’s Next for the Bulk Shippers?

September 12, 2008

Investors seeking wild volatility in recent months have been big fans of the dry bulk shipping sub-sector. The interest in these companies has exploded over the last year because of their unique relationship with commodities, the energy sector, and the materials sector. In most cases over the short and intermediate term commodity spot prices do not affect the supply and demand Read more

Foster Wheeler: Demand in the Bargain Bin

September 12, 2008

Sometimes in the stock market we find a company that has been absolutely dismantled just for being in the wrong place at the wrong time. As the housing market has slipped, the “heavy construction” industry has been hammered by false accusations of an involvement with residential building projects. One of the more profitable long-term investing strategies is to buy a best-of-breed stock in a beaten down industry. Foster Wheeler [FWLT: 19.81, -0.19 (-0.95%)] is my ace in the hole. Read more

Precision Castparts - Underlying Growth Prospects Go Overlooked

August 7, 2008

Chances are, when you think of Precision Castparts, you are reminded of the recent 8-month slide brought about by the fear of Boeing’s “Dreamliner” 787 delays, a gut-wrenching crude oil pricing environment and a supposed slow down in the aerospace cycle. Investors have been quick to lump Precision Castparts in with the fall Read more

Manitowoc Priced To Sell - Growth Never Came So Cheap!

July 30, 2008

Shares of industrial crane powerhouse Manitowoc Co. [MTW: 7.50, +0.02 (+0.27%)] have been on a slippery slope ever since rumors of a deal to acquire Enodis surfaced. Following confirmation of the rumors, and an announced deal at $2.4 billion, Manitowoc shares are 47% off of their 52-week high. Despite all this, Manitowoc had been reaffirming guidance Read more

U.S. Defense Contractors - A Forgotten Growth Industry?

July 21, 2008

As we head into the peak of the second quarter earnings season, the major U.S. defense contractors have yet to feel the full benefit of continued global security threats that promise expectation-topping results. With strength coming from ongoing conflicts in the Middle East, record-breaking backlogs and plenty of company-specific catalysts… cheap valuations have these companies well positioned to see immediate gains. Read more