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

To: Paul Senior who wrote (64067)	5/24/2020 7:59:26 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78704

re HY. - I recall this outfit. I think at some point it was spun off from Nacho? Anyways, the company seem cheap as far as P/S ratio is concerned, but the business just sucks. Gross margins are just ~15% and is hard to make a living with that. They apparently still produce a lot of ICE based forklift equipment which is on the way out and they own some hydrogen based tech (money losing) which I think will meet the same destiny. A big competitor is German Jungheinrich and their gross maligns are roughly 24% and profit margins are of course higher too. They bet on Lithium ion tech and if you look a the world around you, it just makes sense. I don’t know the gross margins of TER much smaller autonomous forklifts, but it is likely much higher. You may get a bounce out of HY, but it looks like a secular loser to me and I think their future looks pretty much like their past.

To: Paul Senior who wrote (64067)	5/24/2020 10:31:13 AM
From: E_K_S	Read Replies (1) \| Respond to of 78704

TER Forward PE is around 17.5x similar to EMR. It is still not clear if either are out of the woods on reducing estimates from their auto supply/parts side from the Covad-10 impact. From 2/3/2020 article Robotics & Automation Teradyne to build ‘world’s largest’ collaborative robotics hub at a cost of $36 million 17 PE's not too rich but perhaps for this virus event s/d price these company's 10%-20% lower reflecting the impact to their auto part division and reduced revenues. Those revenues may not recover until middle 2021. FWIW, my Buys now are very small (25 shares) since little/no brokerage fees. I like to average into a price and buy more on every 1% decline. At some point these large cap industrials s/d return to their mean price and reflect PE's accounting for their investments into future growth technologies. A 'rich' valuation is no earnings large growth and burning cash. My portfolio has been lacking in technology stocks and trying to identify those larger companies w/ good balance sheets, R&D in new technologies and management making moves to develop products/services for this next wave of AI/robotic manufacturing. Still earnings very important. Honeywell is one I have owned for over 10 years and is a good example of what I am looking for. EKS