There are a lot of strong arguments to be made for focusing on high-quality industrial companies like Atlas Copco (OTCPK:ATLKY), 3M (NYSE:MMM), Rockwell (NYSE:ROK), and Rotork (OTCPK:RTOXY),
but valuation is often a challenge. I had issues with Rotork's
valuation in the past, and its heavy skew to the oil/gas markets has
more than outweighed its overall strength in valve actuators and related
products in recent years, sending the shares down about 30% since my last update
on the company. Even now, the shares are not what I would call
conventionally cheap, though the possibility of regaining a premium
valuation as its end-markets recover and it expands its business should
not be ruled out or ignored by investors willing to embrace a wider
perspective on valuation.
Read more here:
Rotork's High-Quality Business Now At A (Somewhat) Lower Orbit
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