Getting orders is one thing. Executing on those orders is a completely different thing, and an area where Cameron (NYSE: CAM )
had been struggling for most of 2013. Three straight miss-and-lower
quarters shook the Street's confidence in the ability of Cameron's
management to execute, though the company's order book has remained
quite strong.
Things appear to be finally starting to fall into place. The fourth
quarter was a badly needed beat-and-raise quarter, and a slowdown in
industry order growth in 2014 could actually be a good thing for the
company as it tries to catch up on capacity. Valuation standards in this
sector are notoriously loose, with EV/EBTIDA as the favored approach,
but I would nevertheless argue that Cameron looks like a strong rebound
trade in 2014.
Follow this link for more:
Cameron International Corporation Getting Its Act Together
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