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A Few From CAPS’ Screener



June 06, 2009 – Comments (1) | RELATED TICKERS: BRKR , HWK.DL , LNN

I was playing around with CAPS’s screener and ran the preset ‘high growth’ screen.  My normal investing interest is value and dividend growth and I wanted to look for something a little outside my comfort zone.

The screen returned 54 stocks across a variety of industries.  Dropping the market cap high limit from $10 billion to $2 billion brings that down to 40 hits.  A quick scan produced three candidates for a little more research. 

Company   Symbol  Market Cap  Fwd PE  PEG Ratio  EPS Growth Rate (last 3 yrs)
Bruker       BRKR       $1.3 B           14.6           1.17               86.5%
Hawkins    HWKN      $203 M          7.61          1.02*              25.5%
Lindsay      LNN        $424 M         28.74         2.69               57.54%

* PEG ratio for HWKN was not listed on Yahoo Finance, presumably because there aren’t analyst estimates for the five-year growth rate.  This value is calculated based on the predicted earnings growth for 2010 over 2009 and the trailing twelve month PE.

BRKR manufactures life science and materials research equipment.  Think of it as the picks and shovels for biotech, laboratory research and a variety of medical or other scientific testing, research, etc.  Along with the research tools, they develop superconducting wire materials.  From the profile on Yahoo, “Bruker Corporation serves pharmaceutical, biotechnology, proteomics and molecular diagnostic, semiconductor, chemical, cement, metals and petroleum, food, beverage, and agricultural companies, as well as academic institutions, government agencies, and raw material manufacturers.” 

BRKR has $148 million of cash on the books and $204 million of debt.  They don’t pay a dividend.

HWKN is a chemical company serving customers in water treatment, the industrial sector and food and pharmaceutical companies. 

HWKN has $14 million of cash and no debt.  They pay a dividend with a current yield of 2.6%.  The dividend is paid semi-annually and they have a decent track record of raising it.

LNN operates in two divisions, irrigation and infrastructure.  The irrigation division makes irrigation systems – everything from the big mobile spray rigs you’ve probably seen to the pumps and control software that go with it.  The infrastructure division makes road barriers, road safety products, commercial tubing and contract manufacturing.

LNN has $41 million in cash and $31 million in debt.

Of these three, HWKN looks the most interesting to me.  I like the customer mix of water treatment, industrial and food/pharma.  That mix should provide a customer base with a good combination of stable demand and growth.  For a good perspective on the future of the water industry, I recommend RonChapmanJr’s pitch for the PowerShares Water Resources ETF (PHO) on the AllStarPortfolio score card.

HWKN is only covered by one analyst; insiders and 5% owners hold 20% of the company and it’s held by some pretty good mutual fund managers.  The dividend payout ratio is only 25% so most of the earnings stream is available to grow the business.  At Friday’s close, HWKN is above the pick price for nearly all the CAPS all-stars.

I want to do some more work on these before making picks or before putting any money to work.  I also want to go back over the hits from the screener to see if I passed over any gems.

Any thoughts on these three?

Fool on!


PS Any hints on getting tables to work in CAPS blogs?  HTML table tags created a table, but I only got partial borders.

1 Comments – Post Your Own

#1) On June 06, 2009 at 10:27 PM, topsecret09 (85.46) wrote:

I've had BRKR as one of my picks since May 1st. Earnings estimates are quietly being raised. Stock looks cheap to me,but the debt Is a question mark. HWKN looks like a solid little company.... Have to keep It on my radar now. Their earnings surprise last quarter was huge,and It seems to be a very well managed company.  Jim 

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