It's bad enough to be wrong about a stock and miss the opportunity to log significant capital gains. It's even worse to try to over-correct for the mistake, buy too late, and rack up capital losses because you chased a good company with a hot stock.
That's the conundrum before me with Colfax (CFX). I not only like the company's exposure to the industrial and energy pump and valve markets, but also happen to think that the acquisition of Charter (and its ESAB welding/cutting business) will be very successful. The key questions, though, revolve around how quickly Colfax management can drive opportunity improvements at ESAB, how far those improvements can go, and how much of that is already captured by today's stock price.
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Trying Not To Get Fooled Again On Colfax
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