it sounds like Jim Beam, but rather than a nasty headache this stock will bring you outstanding returns
I came across a stock this afternoon that I absolutely love and it doesn't have a CAPS rating yet. I say that we change that. The company that I am talking about is John Bean Technologies (JBT). Yes, it sounds like Jim Beam, but rather than a nasty headache the next day (man I hate that stuff, I'm more of a Jack guy) John Bean should bring you a great return on your investment.
As I have said many times in the past, I love spin-offs, which historically significantly outperform the overall market on average. BJT was recently spun-off from FMC Technologies (FMC)
Now that it is free from FMC, BJT can plow its earnings into its own business rather than having them siphoned off by FMC to support rapid growth in its oil business. I suspect that we sill see it make more acquisitions in than it has been in the future.
As people get busier, they tend to eat more processed foods. This growth in the processed food segment will drive business towards JBT and its food processing machinery. Furthermore, JBT's products increase food processor productivity. It is crucial for food processors to be as efficient as possible in today's workd where large buyers like Wal-Mart are squeezing their margins.
In addition to food processing equipment, BJT produces fuel-saving products for the airplanes, such as power systems that reduce the amount of fuel that planes use when idling. This is a nice niche at a time when the price of oil is so high...and likely headed higher.
JBT expects its earnings to increase by 21% this year. Even if a global slowdown cuts into that figure, we're talking about a company that has a P/E ratio of less than 10.
I wish that I had known about this company and had added it to my CAPS portfolio when it was trading at only $11/share, but it still is a steal at this level.