I'll give credit where it's due - the involvement of Nelson Peltz and
his Trian Fund Management, and the willingness of Ingersoll Rand's (IR)
management to embrace that involvement, has definitely delivered
substantial near-term benefits to shareholders. These shares are up more
than 40% over the past year as management has committed itself to a
greater return of capital, improved operating efficiency, and the
spin-off of its security business.
Things may even get better from
here. There are actual signs of progress in margins, even though the
company remains heavily exposed to end-markets (residential and
commercial construction) that are not yet out of their trough. Even so,
it looks like investors have already given management ample benefit of
the doubt and fiddling with the balance sheet really doesn't seem likely
to produce long-term value.
Please read more here:
Investors Have Bought Ingersoll Rand's Sizzle, Can They Deliver The Steak?
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