Flowserve Corp (NYSE:FLS)

KnockoutMouse (< 20) Submitted: 9/14/2010 2:06:45 AM : Start Price: $102.07 FLS Score: -15.88

In picking this stock it had to meet five conditions:
1. A clear leader in an industry with high barriers to competition.
2. Well managed and efficient: with a high ROIC and profit margin.
3. Strong balance sheet, free cash flow adequate to fund its dividend, and well managed debt.
4. A history of substantial dividends and dividend growth.
5. Has performed well in the current macroeconomic environment (i.e. inflation, loose monetary policy, rapid BRIC growth, dollar/euro weakness) by equaling or beating the return on gold (20%+ annually) over the last few years.

Not many companies can make that last claim! This one does.

FLS is a big leader in water infrastructure. It tends to be hard to get a good price on it, sadly.