Situations like the one Lincoln Electric (LECO)
presents to investors today are why investing isn’t easy – the business
has clearly slowed and there are valid reasons to think it may slow
further. And yet, as seen in industry segments like Japanese automation,
the market often prices in bottoms and recoveries well ahead of the
fact. Lincoln Electric shares look undervalued today, and this is one of
the better-run industrials I’ve ever followed, but the company is also
starting to expand into some areas that could increase the overall
operating risk. All told, I think this is a name to start considering,
but investors need to keep their eyes open to the risks of a broader
sell-off.
Read more here:
Lincoln Electric Still Looking Wobbly, But That's What Buying Opportunities Often Look Like
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