Monday, July 20, 2015

Seeking Alpha: Atlas Copco's Frustrating Quality-Value Conundrum

I will grudgingly accept that it sometimes makes sense for investors to pay up for quality, but it is still a hard pill to swallow at times. In the case of Atlas Copco (OTCPK:ATLKY), I can't feel too bad about calling them a little pricey back in February, as the shares fell more than 10% from that point until a strong rebound after second quarter erased a chunk of that underperformance.

Atlas Copco remains a very good company, with leading positions in compressors (used throughout manufacturing and many other end markets), underground mining equipment, and certain segments of the industrial tool and construction equipment markets. What's more, margins are solid and the company has made a point of emphasizing its parts and aftermarket service businesses. The hang-up for me remains price, as Atlas Copco's quality has thus far kept the shares from selling off all that much.

Read more here:
Atlas Copco's Frustrating Quality-Value Conundrum

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