Seeking Alpha: A More Focused Sulzer Should Be A Better Sulzer

Leading pump manufacturer Sulzer (SULZF.PK) (SUN.VX) hasn't been on the best run of late. Relative to fellow pump players Flowserve (FLS) and Weir Group (WEIGY.PK), Sulzer's performance over the past year (up about 4%) has been pretty poor, due in very large part to a huge miss with second quarter earnings and a three-day fall of nearly 20%.

Admittedly, the company's guidance for fiscal 2013 isn't exciting - sales and order growth in the low single digits - and Sulzer's margins and returns on invested capital have been stepping lower since 2008. That said, this company has 20% to 50% share in its core pump markets and a decision to refocus around its pump and fluid control businesses in markets like oil/gas, power, and water should lead to improved results down the line. Buying Sulzer today is a contrarian move, and a bet on improved operating performance, but one that I don't think is unreasonable given the company's past performance and future potential.

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A More Focused Sulzer Should Be A Better Sulzer

Investopedia: Lincare Shows That You Can Go Home Again

If I had to guess the sort of healthcare company that would get a premium acquisition offer, Lincare (Nasdaq:LNCR) would be low on my list, as relatively few buyers would want to pay a premium to get into a business that is beset by constant reimbursement pressures. But, as the old saying goes, you only need one buyer to make a deal and Lincare found that one.

In a deal that reverses a spin-out from nearly 25 years ago, German industrial gases company Linde will be acquiring Lincare for $4.6 billion in total considerations. That works out to $41.50 per share for Lincare's shareholders; a 22% premium to Friday's closing price (which had been moving up on takeover rumors) and a whopping 67% premium to the stock's three-month average price.

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http://stocks.investopedia.com/stock-analysis/2012/Lincare-Shows-That-You-Can-Go-Home-Again-LNCR-APD-PX-AMED0704.aspx

Seeking Alpha: Chart Industries Running Hot And Cold

It takes time to reorganize a country's energy infrastructure, let alone the world's, but there are nevertheless real signs of progress when it comes to natural gas. While the LNG story is still dominated by large energy companies looking to monetize huge natural gas fields in remote corners of the world, there has been progress towards the use of LNG in place of gasoline or oil in many applications around the world.

As that process continues, the potential for Chart Industries (GTLS) should only improve. That said, while there is a pretty hot future in keeping gas very cold, the company's current financial performance and valuation leave something to be desired.

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Chart Industries Running Hot And Cold

Investopedia: Fastenal Not Slowing Down Yet

There is ample fodder for a dour outlook on the U.S. economy. Politicians in Washington, D.C. continue to play chicken with the budget. Debt discussions, economic statistics like employment, wage growth and ISM are not terribly encouraging, and indicators like rail traffic look sluggish.


Nevertheless, plenty of companies with strong correlations to the health of manufacturing are still performing well. Growth at industrial supplier Grainger (NYSE:GWW) has slowed but is still pretty solid, while other industrial input companies like Lincoln Electric (Nasdaq:LECO) and Praxair (NYSE:PX) have strong stocks and good earnings estimate momentum.

With that backdrop, then, it is perhaps not so surprising that Fastenal (Nasdaq:FAST) reported solid top-line growth for the second quarter. Though it was not a perfectly clean quarter and the stock is quite expensive, Fastenal's results suggest underlying business activity is not so terrible. (For related reading, see Profit By Understanding Fundamental Trends.)


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http://stocks.investopedia.com/stock-analysis/2011/Fastenal-Not-Slowing-Down-Yet-FAST-GWW-LECO-PX-KMT-AXE-AIT-WCC0713.aspx

Investopedia: Industrial Softness Spreading Out

There have been some concerning signs recently that the economic recovery is petering out. Railroad traffic is softening and industrial supply giant Grainger (NYSE:GWW) has been reporting decelerating growth in its U.S. orders. With recent data points from leading mini-mills and a major European industrial company, it looks as though the second quarter saw a definite slowdown, and growth for the rest of the year is up in the air. 

Spotty Demand for Steel? 

Last week saw earnings preannouncements from both Nucor (NYSE:NUE) and Steel Dynamics (Nasdaq:STLD). Nucor was relatively upbeat in the text of its release, talking about how prices for finished steel have caught up with rising material costs. That said, things have not improved enough - the midpoint of Nucor's guidance was about 10 cents (or 12%) lower than the prior average analyst estimate.

The report from Steel Dynamics was less rosy (and more detailed). Steel Dynamics has seen lower recycling profits as the cost of scrap copper and steel have risen. Worse yet, steel orders were down 25% in April before starting to improve in May.

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http://stocks.investopedia.com/stock-analysis/2011/Industrial-Softness-Spreading-Out-NUE-STLD-GWW-F-LECO-ITW-PX0621.aspx

Praxair's Success Not Just Hot Air

I have been somewhat obsessed with trying to figure out the real tenor of the economy during this earnings season. Specialty chemical companies like Albemarle (NYSE:ALB) have been strong, coal companies like Peabody (NYSE:BTU) have been reasonably positive and industrials like Dover (NYSE:DOV) have had pretty solid guidance. In fact, the only major notes of caution have been from steel companies like Nucor (NYSE:NUE). 

Industrial gas provider Praxair (NYSE:PX) goes solidly in the camp of "good news for the economic recovery". Although industrial gas companies sign customers to long-term contracts and do not tend to be quite as cyclical as you might immediately think, the volume growth that this company is seeing is nevertheless a pretty strong testament to growing economic activity around the world. 


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http://stocks.investopedia.com/stock-analysis/2010/Praxairs-Success-Not-Just-Hot-Air-PX-ALB-BTU-DOV-NUE-ARG-APD0730.aspx

Can Investors Capture Gains In Carbon Capture?

Carbon capture and storage (CCS) seems to be an inevitable emerging technology over the next few decades. CCS holds the promise of cutting CO2 emissions from power plants by up to 80-90%, while not imposing a crippling cost burden on energy producers and customers. As increased legislation aimed at controlling green house gas emissions seems like a done deal in the years to come, investors should look to see how they might position themselves to profit. 

Look to the Oil FieldsOne of the early adopters of CO2 capture and storage has been the oil and gas industry. Companies including Statoil (NYSE:STO), Kinder Morgan (NYSE:KMP), and Denbury Resources (NYSE:DNR) have been early movers in this field, which involves injecting CO2 far beneath the ground to stimulate better oil and gas production. Kinder Morgan operates CO2 pipelines and reported a few years ago that in the Permian Basin and Mississippi nearly 11 trillion cubic feet of CO2 had been used to generate and incremental 1.2 billion barrels of oil that might otherwise have remained in place.

For the complete column, please go to:
http://stocks.investopedia.com/stock-analysis/2010/Can-Investors-Capture-Gains-In-Carbon-Capture-STO-KMP-DNR-ALB-GRA0616.aspx