Some of this share price decline seems
reasonable to me. First, Atlas has often carried a pretty healthy
valuation and that's harder to support in a virtually no-growth
environment. Second, the outlook for mining is feeble at best, while the
"general manufacturing" segment served by the company is looking quite
weak indeed and particularly so in the U.S. and China.
If
you believe in buying good companies going through hard times not of
their making, this is a good time to look further into Atlas Copco.
There's definitely downside risk if a mild manufacturing recession for
2016/2017 proves more serious or longer in duration, but that's how it
goes with "buy the dip" opportunities - there's almost always some
reason for that dip.
Continue here:
Atlas (Copco) Sneezed
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