Seeking Alpha: Entegris Is Another Small-Cap Play On Future Semi Spending

Investors aren't exactly in danger of running out of ways to play expected improvements in semiconductor capital spending in 2014. I've already talked about opportunities in companies like Ultratech (UTEK) and Mattson (MTSN), and both appear to offer significant value if and when next-gen capital spending increases.

Entegris (ENTG) is a different sort of play. Unlike Ultratech and Mattson, there really isn't much of a missionary aspect to sales - semiconductor manufacturers already understand the need for contamination control and advanced material handling, and Entegris already holds solid share in its core markets. That said, more advanced fab processes should require more filtration equipment and a larger sales opportunity for Entegris. While I don't necessarily see as much upside in the Entegris bull-case scenario (compared to Ultratech or Mattson, that is), I believe there is less execution risk here and still an opportunity to generate worthwhile capital gains.

Please follow this link to the full article:
Entegris Is Another Small-Cap Play On Future Semi Spending

Investopedia: Pall Always Gets The Benefit Of The Doubt

I'd hate to be short Pall (NYSE:PLL), as large companies in the filtration space often seem as close to bulletproof as you can find in the market. So even though sell-side analysts chronically overestimate Pall's free cash flow, investors remain happy with a company that admittedly enjoys strong share and a very lucrative channel of repeat business. While I think Pall's shares remain overvalued, I don't have any particular reason to believe that the shares will sell off dramatically, as the life sciences business should be stable and the industrial business should start improving next year.

Please read more here:
http://www.investopedia.com/stock-analysis/082913/pall-always-gets-benefit-doubt-pll-dci-entg-iex.aspx

Seeking Alpha: Pall Has The Quality, But Valuation Is A Stretch

Filtration has been a popular niche within industrial and life science markets, and it's not hard to see why. Once a system is in place, the vendor can usually look forward to years of lucrative disposables/consumables sales and customers are disinclined to risk their reputations or systems (to say nothing of downtime) just to save a few bucks on a competing platform.

All of that speaks to why Pall (PLL) should be a popular stock. Certainly the company has a great array of businesses, with relatively dependable markets like biopharmaceuticals and healthcare offsetting more volatile and cyclical industries like microelectronics and aerospace. That all being said, there's a fair value for every asset and Pall is going to have to deliver remarkable performance to live up to its present valuation.

Please click here for more:
Pall Has The Quality, But Valuation Is A Stretch

Investopedia: Pall And The High Cost Of Excellence

Being a disciplined value-oriented analyst can be a real pain sometimes, as it often forces you to hold off from buying names you'd really like to own. Filtration specialist Pall (NYSE:PLL) is a good case in point. The company has appealing returns on capital, a great, broad-based filtration business, and appealing upside to internal improvements. Unfortunately, the Street knows all about this name and the value just isn't there.

A Very Solid Start to the Fiscal Year 

Pall certainly got its fiscal year off to a good start, posting nearly 12% revenue growth in constant currency terms and beating the average Wall Street guess by about 10%. Growth was led by 19% higher sales in the industrial category, while life sciences was hardly a laggard at 14%. Biopharma, energy/water and aeropower, were notable subcategories with strong growth, while performance in medical, food/beverage and microelectronics was less impressive.

Please follow this link for more:
http://stocks.investopedia.com/stock-analysis/2011/Pall-And-The-High-Cost-Of-Excellence-PLL-GE-CLC-BA1213.aspx

Investopedia: Pall May Be Offering An Entry Point

Looking at the results of companies in the broadly-defined filtration business, for example companies like Donaldson (NYSE:DCI) and Clarcor (NYSE:CLC), it may be tempting to decide that the run in industrial filtration is over and it is time to move on to other ideas. In the case of Pall (NYSE:PLL), though, that may not be the wisest long-term move. While Pall is certainly not performing at peak potential, the opportunities that seem to be left in the company and stock make it a worthy consideration for a long-term investor.

A Tough End to the Year  
Pall pre-announced a disappointing fourth quarter result, so the market has already had a chance to digest the news and punish the stock accordingly. Pall reported that revenue rose 15% on a reported basis, with constant currency sales growth of about 6%. Growth was led by the life sciences business, with 8% constant currency growth. This segment is slightly more than half of the company's total sales. On the industrial side, growth was a more modest 5% (again on a constant currency basis).

Click the link below for more:
http://stocks.investopedia.com/stock-analysis/2011/Pall-May-Be-Offering-An-Entry-Point-PLL-DCI-CLC-BA-GE-TYC0919.aspx

Investopedia: Donaldson Likely Looking At A Lower Gear Next Year

The trouble with good times is that in the market they always come to an end sooner or later. Like many other industrial and vehicle suppliers, Donaldson (NYSE:DCI) has had a very solid run as the economy has recovered from its worst levels. With a lot of OEM orders already in the history books, though, it looks like the pace of growth is due to slow, and it's anybody's guess as to whether shareholders will remain as loyal to the stock if growth finds a lower gear.

A Solid Cap to a Good Year  
Donaldson did well for its fiscal fourth quarter. Revenue rose 21% as reported, or about 13% on a constant currency basis. Admittedly that pales a bit when compared to the results of Caterpillar (NYSE:CAT), BorgWarner (NYSE:BWA), or Cummins (NYSE:CMI), but it was a good result and it compares well with other filtration players like Pall (NYSE:PLL) and Clarcor (NYSE:CLC).


To read the full piece, please go to Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/Donaldson-Likely-Looking-At-A-Lower-Gear-Next-Year-DCI-CMI-CAT-BWA-TEN-HON-PLL-CLC0830.aspx

Investopedia: Eaton's Growth Still Industrial Strength

For all of the worries about another slowdown in the economy, many industrial conglomerates are reporting solid growth in calendar second quarter results. Eaton (NYSE:ETN) is clearly among them. What is interesting, though, is the extent to which this growth has been bulwarked by the emerging markets - a circumstance that is tiding over many of these companies in lieu of a stronger domestic market. 

Solid Second Quarter Results  
For the Q2, Eaton reported that revenue grew more than 21%. Stripping out acquisitions, foreign currency and the like, organic growth was more on the order of 14%. Unusual for many industrial companies, Eaton management also provides its opinion on end market growth, and it believes its end markets grew 12% in the quarter - suggesting some meaningful share growth for the company.


To continue, please follow the link below:
http://stocks.investopedia.com/stock-analysis/2011/Eatons-Growth-Still-Industrial-Strength-ETN-SI-EMR-HON-CAT-CMI-PLL0730.aspx

No Need To Rush On Donaldson

When investors can find a company that earns a great return in a pervasive but low-key industry, they should hang on tight. That certainly would seem to apply to filtration company Donaldson (NYSE:DCI). Not only has Donaldson managed to produce double-digit returns on invested capital on a consistent basis, but the company has also managed to exploit leverage on the free cash flow line; generating a decade of double-digit compound growth off of single-digit sales growth.   

The Quarter That Was
Like a lot of industrial companies, Donaldson had a very solid summer quarter (the company's fiscal fourth quarter). Revenue jumped 22%, as the company's engine product segment grew even faster (up 35%). Profitably was likewise solid across the board - gross margin improved by more than a full point, and the company more than doubled its operating income from the year-ago level. 


http://stocks.investopedia.com/stock-analysis/2010/No-Need-To-Rush-On-Donaldson-DCI-CAT-DE-BA-IBM-CMI-PLL0901.aspx