Thursday, July 23, 2015

Seeking Alpha: SKF's Erosion Is Cause For Concern

Bearings are virtually ubiquitous in manufacturing and transportation, so I don't believe it is a stretch to say that Sweden's SKF (OTCPK:SKFRY) can be an invaluable barometer of early-cycle trends. That makes the company's ongoing erosion in organic growth worrisome, even allowing for the possibility of company-specific issues playing an increasing role.

SKF's new CEO seems to be taking the company in a disappointingly less-open direction, and the market really hasn't gotten much specificity regarding price/mix, the restructuring plans for the automotive segment, nor the ongoing cost reduction initiatives. That might not bother me as much if the shares were a bargain, but I don't see a lot of reason to lean toward giving a benefit of the doubt right now.

Read more here:
SKF's Erosion Is Cause For Concern

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