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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (45886)	12/8/2011 4:17:56 PM
From: Spekulatius	Respond to of 78464

Sulzer? Bingo!. My notes: SUN.SW ; 34M shares outstanding @ ~ 100 CHF each. Market cap 3.4B CHF. 2010 numbers EBITDA (2010) ~ 510MCHF, 9 CHF earnings/share (2011 10.5CHFe ), ~3% dividend yield. 350MCHF in net cash but they are spending ~600MCHF on an acquisition. Only 50% of their business is associated with water but the other business lines are comparable in terms of economics . 40% of their business is in emerging markets versus ~20% for XYL. Order intake is up 17% YoY in CHF not in clownbucks! They survived the great recession very well sulzer.com SUN.SW is a much cheaper (by about 30% in terms of EV/EBITDA), less leveraged and at least equivalent in terms of growth potential and profitability. For me, looking at the value case first, it's a no brainer to buy shares in SUN.SW compared to XYL at this point, I got a few this a.m at 98CHF, but I think i'll build a good size position if the market falls (and it certainly looks that way).

To: Sergio H who wrote (45886)	12/8/2011 4:55:58 PM
From: E_K_S	Respond to of 78464

Sulzer, Ltd. (SULZF.PK) finance.yahoo.com Sulzer Ltd manufactures industrial machinery and equipment, and surfacing technology, as well as offers rotating equipment maintenance services. It operates in four divisions: Sulzer Pumps, Sulzer Metco, Sulzer Chemtech, and Sulzer Turbo Services. The Sulzer Pumps division develops and supplies centrifugal pumps. This division primarily serves oil and gas, hydrocarbon processing, power generation, pulp and paper, water distribution and treatment, and other general industries. The Sulzer Metco division supplies solutions, products, services, and equipment for thermal-spray, thinfilm, and other functional surface technologies, as well as provides specialized machining services. This division serves power generation, aviation, automotive, and other specialized markets. The Sulzer Chemtech division operates in the fields of process technology, separation towers, two-component mixing and dispensing systems, trays, structured and random packings, internals for separation columns, and reaction technology. It also provides engineering services for separation and reaction technology, as well as offers tower field services; engages in the separation and purification of organic chemicals by crystallization and membranes; and offers mixing and reaction technology, and mixing and cartridges technology. This division serves clients in the oil and gas, hydrocarbon processing, and other industrial markets. The Sulzer Turbo Services division provides repair and maintenance services for turbomachinery, generators, and motors; and manufactures and sells replacement parts for gas and steam turbines, compressors, generators, and motors. It serves the oil and gas, hydrocarbon processing, power generation, transport, mining, and other industrial markets. The company also provides contract research and technical services, such as diagnostics and certified testing, and one-off production and engineering. Sulzer Ltd was founded in 1834 and is based in Winterthur, Switzerland. ------------------------------------------------------- Very little long term debt compared to their net annual sales. Product margins are good and PE close to 10. Meets a lot of my value criteria. EKS Good "wrong" guess w/ SI. I bought this one around $68.00/share as a value play almost 2 years ago ago but sold my last lot at $115 in 10/2010. I should of held it longer as $140.00 was the 2011 high but today I guess it is a bargain now at $97. PE 9 and excellent debt profile.