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Strategies & Market Trends : Value Investing
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To: Shane M who wrote (43920)8/12/2011 10:02:43 PM
From: Spekulatius  Read Replies (2) of 78746
 
re Shane - some nice business to look at - thanks for posting.

re NEU - I like the lubricant business.It has some nice long term growth, good margins, somewhat but n ot extremely economy sensitive (the wheels needs to be greased even if they are turning less) and a few companies owning the market.

Fuchs Petrolub is German company that I sadly never owned but have followed on and off forever. they IPO'd some time in the 80's and always paid generous dividends. Their business generates a lot of FCF so they can expand organically and with acquisitions and over time they build an impressive business. This is the kind of stock that you can tuck away, probably over decades and end up with a very valuable stake. I believe that Warren Buffet noted these characteristics and that is why he bought Lubrizol for about 11-12x earnings.

A similar business (more capital intense) si the industrial gas business, which benefits from many growth angles and particular technology, has few competitors and often their customers or hooked in since they run the plants on customer premises or own the distribution or the product are customized for application (technical gases are an example).

FWIW, I have bought a similar business (parrafins and lubricants) on the Japanese exchange 5018.T, Moresco Corp. - trading at around 740Yen, earnings ~110Yen, 25 Yen dividend. I am also looking at some industrial gas companies in Japan but have not bought yet - the US companies are too expensive now.
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