$63.16
-0.97 (-1.51%)
Lufkin Industries, Inc. (LUFK)
CAPS Rating:
The Company and its subsidiaries manufacture and sell oil field pumping units, power transmission products and highway trailers throughout the world.
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Fool UK
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A truely outstanding pick made by EldrehadsPicks in October 2007. If you would like to read a thorough analysis of this company, visit his blog...
http://caps.fool.com/Blogs/ViewBlog.aspx?t=01002263092484976839&month=10&year=2007
For a quick summary of his points:
* LUFK operates in 3 main segments: oilfield equipment, power transmission, and trailers. Oilfield equipment consists of 2/3 sales, and is the reason why I was attracted in the first place.
* top line has increased 30% annually over 4 yrs
* sign of good managment: SG&A decreasing as % of sales
----> operating/net margins increasing YoY as well
* management had a good feeling about company's prospects at the end of 2007 based on backlog & international strength (man, were they right on the money)
* strong balance sheet w/ $0 debt and $7 cash per share
Unfortunately, we're already over 3/4 of the way to Elrehad's fair value estimate of $104, based on 11% growth.
I saw this as a great opportunity and pulled the trigger on CAPS, but missed out on a nice return with real money. I am grateful to Big E for introducing us to a great company that will most likely continue its successful run for investors.