Banner
Diversified Machinery

Individual company worksheets may be downloaded by simply clicking on the company name.

Ampco-Pittsburgh Corporation (NYSE: AP) – FYE 12/2016

Crane Company, Inc. (NYSE: CR) – FYE 12/2016

Cummins, Inc. (NYSE: CE) – FYE 12/2016

Dover Corporation
I looked through the financials and read through the company filings just in awe of the y-o-y performance the company had during FY17. Sales growth of 15%, earnings growth of 53%, free cash flow growth of 31%, and a net reduction in debt of 1%. Now that, in one helluva year. Unfortunately, the markets have priced this information into the current stock price. [Sigh] In May 2018, the company will be spinning off its well site business into a new a new company to be named Apergy. The company will be a publicly traded company. I have not had an opportunity to see how the loss of the well site businesses will impact Dover’s financials, but savvy investors may want to take the time to do just that. I had a chance to take a position in Dover back in 2012 which I passed on. Dumb me. Had I gotten in at that time, the investment would have generated an average annual return of 18%. Figures I would pass.

Dover Corporation (NYSE: DOV) – FYE 12/2017 – OVER VALUED – The stock is currently trading at levels above my most recent fair value estimate – Please See Linked Worksheet

Ingersoll-Rand Company, Ltd. (NYSE: IR) – FYE 12/2016

Roper Technologies, Inc. (NYSE: ROP) – FYE 12/2016

SPX Corporation
The company is restructuring to lower costs having spun off their other businesses and consolidated operations into the current business model. Okay, I get it. But there were a couple of things that I didn’t get. The company manufactures stuff, metal stuff, pumps and valves and mixers and just stuff, but they spend just $0.46 per share on CAPEX. What amazed me about that number is after spending $0.46 on CAPEX, there is still $4.39 of Free Cash Flow left to pay dividends! Oh! wait. They don’t pay dividends. Hmm. I’m sure once the company gets itself all situated and restructured and eats a banana, they will do well. But with little spent on CAPEX, no dividends paid to shareholders and no apparent plan on how to spend its cash, I am having a hard time understanding just how they intend to compete, to grow the business, to increase shareholder value. Until I can figure that out, I will leave this one to the cake makers of the world.

SPX Corporation (NYSE: SPXC) – FYE 12/2017 – SELL HALF – The stock is trading at levels above my current $22 fair value estimate, but below my $36 close target – Please See Linked Worksheet

Twin Disc, Inc. (Nasdaq: TWIN) – FYE 06/2017 – Sell – The current market price is too high basis the current P/E, growth potential and balance sheet metrics. SEE RESEARCH NOTES

Please note that worksheets are updated basis the most current SEC 10-K ANNUAL filing.