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Strategies & Market Trends : Value Investing
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To: Paul Senior who wrote (62204)7/11/2019 6:51:47 PM
From: Spekulatius1 Recommendation

Recommended By
Jurgis Bekepuris

  Read Replies (2) of 78744
 
Wie gehts?
Danke, sehr gut!.
FPE.DE (Fuchs) is a well managed company. It does look like Europe at least is going to have a recession. KRN.DE (Krones - world leader in bottling machines) also had weak results (down almost 20% today) and BASF (chemicals) just announced very weak earnings a few days ago (EBIT down 50% last quarter).

Several German quality companies start to come down to attractive levels - Henkel (HEN.DE) being another example. I will put Fuchs on my watch list.

FWIW, I watch chemicals companies closely, since it is one of the best indicators of economic growth and health. This is because chemical go into everything basically and margins are very sensitive to changes in growth rates (much more so than revenues) since for most products, these commands are price takers.

Fuchs is a bit different, because they sell basically consumables. Selling less consumable means that customer are destocking and/or using less because of lower consumption rates (supposedly because their machines are less utilized). Again an indicator of economic slowdown. I think it is likely that manufacturing in the US will be in a recession next year.
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