Friday, January 17, 2014

Seeking Alpha: Interpump A Largely Unknown Italian Success Story

Outside of fashion brands like Gucci and perhaps sports cars like Ferrari, Italy really doesn't enjoy a particularly good reputation as a home to solid companies that are competitive on an international basis. Interpump Group S.p.A (OTC:IPGLF) (IP.MI) looks like a notable exception to me. Through both M&A and internal development, Interpump has emerged as a global leader in high/ultra-high pressure pumps and hydraulic components like power take-offs and cylinders.

Interpump's margins and returns on capital compare pretty well to better-known U.S. industrials like Eaton (ETN), Parker-Hannifin (PH), and Emerson (EMR), and many U.S. corporations could take a lesson from Interpump in terms of how it communicates and shares information with shareholders. These shares went up almost non-stop through 2013 and are not a screaming bargain today, but it's a company worth further due diligence and a spot on watch lists.

I also want to note that while Interpump technically has an ADR listing, I cannot confirm that shares have actually ever traded under that IPGLF ticker. Given that access to European markets has gotten better and better (and cheaper), I would definitely suggest buying the Italian shares over the ADRs.

Read the full article here:
Interpump A Largely Unknown Italian Success Story

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