COVID-19 Creates A Window Of Opportunity With Lincoln Electric

For quality industrial stocks like Lincoln Electric (LECO), often the only times an investor can establish a position at attractive prices is during ugly downturns in the business. The COVID-19 outbreak is providing that in spades, as the business downturn in the U.S. pushed Lincoln's April business down 40%, leading the company to accelerate some cost savings programs and look to conserve cash and liquidity.

I'm not really worried about the downturn that's underway; this downturn is different, but Lincoln Electric has navigated many of these cycles. I'm also not too concerned about some of the unique margin challenges of this downturn. I am still concerned about the health of the European business, though, and I think management needs to address that more aggressively.

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COVID-19 Creates A Window Of Opportunity With Lincoln Electric