BAK - Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : BAK - Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: DoggyDogWorld who wrote (2995)	6/19/2012 3:43:09 PM
From: Spekulatius	of 3249

Re: KSB3.DE - I posted this on the value board, but this is an extremely cheap KSB.DE margins have rising over the years, they are still below those of some competitors. I am not sure about the reason why they are rising, I believe consolidation plays a role, as do increased maintenance/service revenues that are quite profitable. I looked at XYL and Sulzer as peers and they all show margin improvements over time. I think KSB.DE has some catchup to do and if they can get their margin to similar levels than their competitors, the stock is at least a double. they state that this years earnings are about the same than 2010 (2008 was peak, I think at about 60 Euro's share), which would be ~45 Euro/share or a PE ~8x for KSB3.DE. Not bad for a company that has 20% of their market cap in net cash. I regard KSB.DE as a cyclical growth business, since I think that the pumping business get's better economics for the leading players and they touch many growing sectors (water business, etc.)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next