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

To: Spekulatius who wrote (50769)	2/4/2013 12:35:16 AM
From: Jurgis Bekepuris	Respond to of 78618

KSB3.DE : This is one of those stocks that I am getting blank stares here. No pink sheet ADRs. I doubt many people here buy Euro/Asian shares on native exchanges. I know you mentioned it couple times. I am starting to warm up to idea of buying some Euro shares natively, but I can only do it in non-retirement account in Fido (no, I don't want to move my retirement accounts to IB just to be able to trade internationally. Not worth it for me).

To: Spekulatius who wrote (50769)	8/6/2013 1:19:12 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78618

I looked some more at KSB, since you mentioned again in the post about your portfolio. It is somewhat cheap based on PE / DCF, especially with runup in US-based industrials like DOV. Nice balance sheet. I don't like that company reports nebulous (pre-tax?) ROE (>14) in their reports. It is misleading. Real ROE is much lower (<10). Net margins at 4% are very low for a company that claims some kind of brand strength (moat?). Crappy FCF for last two years: almost zero for 2012 and negative for 2011. It might be that the Euro crisis is a good time to expand internationally, but I'm not so sure... So they are spending a lot of money on CapEx, though perhaps that's the reason why their sales/earnings did not fall even lower. Overall: I need to think more about this one. :)