Wednesday, January 15, 2014

Seeking Alpha: Waiting For That Next Chance On Lincoln Electric

Welding specialist Lincoln Electric (LECO) has been a great investment for the long term, even with an ugly 2008/2009, as the company has reliably produced solid growth, margins, and returns on capital despite serving a cyclical, economically-sensitive end market. Management is far from content to rest on its laurels, and is already targeting growth opportunities in emerging markets and applications like automation.

Lincoln Electric has a habit of offering double-digit pullbacks, and these have generally been good opportunities to buy the stock. While I'm not a market timer, these shares don't leap out as cheap right now, and major welding rivals like Colfax (CFX) and Illinois Tool Works (ITW) are both talking of mediocre overall market conditions for 2014. I'd keep my eyes open for the possibility of getting these shares in the low $60s, though today's price isn't terrible on a long-term basis.

Continue here:
Waiting For That Next Chance On Lincoln Electric

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