It's an underappreciated fact of investing in industrial companies, but
margin performance goes a long way toward explaining stock performance.
With the market basically sold on the ability of Colfax (NYSE:CFX)
management to turn around the ESAB welding business (now part of
Fabrication Technology), the shares have done well this year and sit
just below a 52-week high despite ongoing wobbles in industrial orders
and soft welding demand. Although I don't doubt management's ability to
drive better-than-expected margins, it's getting harder to justify the
stock's premium.
Please follow this link to continue:
http://www.investopedia.com/stock-analysis/082713/market-already-convinced-colfax-will-meet-or-beat-its-goals-cfx-leco-itw-itt.aspx
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