Sandvik Barely Makes The Quarter, But Investors Seem Relieved

Maybe the worst is over for multi-industrials. Multiple end markets are still weakening, but investors seem to increasingly have this factored into their outlooks, as Sandvik’s (OTCPK:SDVKY) low-quality beat in the third quarter seems to have gone over fairly well with investors. I think we could still see another downturn in the shares before year-end (with the ADRs retesting the $14-$15 zone from $17 today), and the stock is not particularly cheap on a DCF, but I think the conversation around Sandvik will start to evolve toward the question of when the Machining Solutions business will bottom out and recover in 2020.

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Sandvik Barely Makes The Quarter, But Investors Seem Relieved