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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