Thursday, March 7, 2013

Seeking Alpha: Kaydon's Strong Niche Focus Doesn't Produce Quite Enough Value

I love somewhat obscure and under-followed industrial companies, particularly when they are leaders in their markets and have quality investors like Royce & Associates on board. That said, I find it hard to find a lot of value in Kaydon (KDN) shares today. Although the company has considerable market share and pretty solid margins, the bottom-line return on capital and free cash flow generation just aren't quite where they need to be relative to valuation to make this a must-own right now.

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Kaydon's Strong Niche Focus Doesn't Produce Quite Enough Value

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