Not unlike Danaher (NYSE:DHR), the very successful conglomerate to which Colfax (NYSE:CFX)
is so often compared, the problem with Colfax is not the quality of the
businesses, the margin/growth potential, nor the quality of management
or long-term opportunity. The issue is valuation. Colfax bulls seem to
be so eager to find that next Danaher that they continue to award Colfax
very generous multiples even despite multiple quarterly misses in the
last two years. Much as I admire Colfax and find the growth opportunity
to be compelling, I can't get comfortable with a take-no-prisoners
valuation today.
Read more here:
Colfax Still Enjoying The Fruits Of Superior Growth Potential
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