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Three Showing the Industrial Age Is NOT Ending

Recs

16

April 11, 2011 – Comments (7) | RELATED TICKERS: MSM , RPM , AZZ

I took a quick look at three small-mid cap industrial earnings reports from last week to see if they support reports of a recovery.  To make a short story shorter, yes, they did.  The three companies cover a broad portion of the industrial/construction/manufacturing world and all three had revenue increases compared to the year ago quarter.

I didn't get in to valuations in the article, but all three had reasonable valuations - not screaming buys, but not wildly overvalued.  

As always, do your own due diligence if you're thinking about making a buy.

What do you think?  Is the economy recovering or are reports of revenue increases just a head fake?

Disclosure:  Long RPM, one of the stocks mentioned in the article.

Fool on!

Russ

 

 

7 Comments – Post Your Own

#1) On April 11, 2011 at 8:55 PM, MegaEurope (< 20) wrote:

Alstry to thread in 3 ... 2 ... 1 ...

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#2) On April 11, 2011 at 9:07 PM, rd80 (98.29) wrote:

MegaEurope - many thanks for the comment and laugh.

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#3) On April 11, 2011 at 9:28 PM, alstry (35.87) wrote:

Zero...Oh yes it is....and YOU will know two by the end of April.

This could be the most embarrassing analysis to appear in a while.  2 out of the thee companies have LOWER annual revenues than they did a few YEARS ago......

DESPITE THE FACT THAT GOVERNMENT IS RUNNING A $2 TRILLION DOLLAR DEFICIT....

Some Fools simply think you can borrow your way to prosperity....until you can't.

+1 rec from me for confirming sheep still roam the earth

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#4) On April 11, 2011 at 9:31 PM, MegaEurope (< 20) wrote:

I guess al took a couple of minutes off.

To me the valuations look a bit stretched, especially MSM.  In industrials it seems like most of the growth is just snapback to previous levels, not a long term trend.

I'm an architect and have specified RPM's Tremco products before (normally, products like waterproofing and sealants are interchangeable so we have lists of acceptable manufacturers).  Although being a Corning shareholder, I'd rather specify Dow Corning.

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#5) On April 11, 2011 at 10:04 PM, rd80 (98.29) wrote:

alstry - Many thanks for chiming in.

The industrial age may very well shut down by the end of April.  It just won't be April 2011.

It's been proven that you CAN borrow your way to prosperity (see bank CEOs) until you can't.  We just don't know how long before 'until you can't' rears its ugly head.  My best guess is the end of QEn, but I don't know the value of 'n'.

 

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#6) On April 11, 2011 at 11:13 PM, alstry (35.87) wrote:

Time will tell.......as it is shutting down right before your eyes....

Japan, Egypt, Libya, Syria, Bahrain, Greece, Portugal, Tunisia, Ivory Coast, England..................

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#7) On April 12, 2011 at 5:07 PM, TDRH (99.69) wrote:

What happened to 9-9-09? 

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