Pentair, Inc. (NYSE:PNR)

CAPS Rating: 4 out of 5

The Company is comprised of two segments:Water Group, which provides products and systems used in the movement, storage, treatment, and enjoyment of water; and Technical Products Group, which designs and manufactures standard, modified, custom enclosures.

Recs

1
Player Avatar Smallworld0 (< 20) Submitted: 4/28/2009 7:48:15 PM : Underperform Start Price: $23.70 PNR Score: -117.95

Pentair shut down several plants and have plans to do away with 6-9 more. They are shedding jobs in an effort to curb costs and boost profits, at the expense of customer service and manufacturing, leaving the customer in the lurch for product and repair. So, how do you sell your product when you have no one left to make it and no one to sell it and no one to take the phone call??? Their 'vertical market' change is old hat in the marketplace, yet they just discovered this new plan. Their hubris of 'Tier I' distribution only will undermine any profit margins, as they give up higher multipliers to entice top tier distribution to sign exclusive contracts they will never manage to honor because of the poor delivery and poor quality product. They just had another round of layoffs, after one in each of January and February. The remaining employees were forced to take a 10 percent paycut for at least 2 weeks, with the option to take a week's vacation to make up for it. (Can you say now you have one less week of severence pay we have to give you?) Now, they have slashed their company match for 401K.
This is a company in trouble, a company who is slashing anything they can to make the shareholder believe all is well. My opinion - they are ripe to be bought out, perfect for a takeover target. GE - do you see this???

Member Avatar TDRH (99.76) Submitted: 8/12/2013 11:37:03 AM
Recs: 0

If you are correct, things will go from bad to worse if GE buys them.

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