Ingersoll-Rand Company Limited (NYSE:IR)

underprice for now.

With spinoff, rise in dividend, and overall good business dynamics, seems like a good bet to beat the market in the year ahead. Outperform.

Spinning off its security business. Usually that means both parent and spin off go up. Stock buy backs, and increased dividends. Icahn buying in. Good candidate for a winner.

IR just announced plans to spin off its security business, bumped its dividend 31%, and announced a share buyback program. Usually spinoffs end up creating value for both the original company and the new one; I think these recent developments make the stock a long-term winner.

This diversified industrial conglomerate looks like a solid candidate to split-up to unlock value now that activist investor Nelson Peltz is involved.

Deej

Doubled down on IR in the real life portfolio at $26.50 this morning following the disappointing earnings report and guidance. Buffet has a bid on this name at ~$37 a share. To not buy the same security at these levels is narcissistic. Treat yourself to your own sweetheart deal at Buffet's expense, for once. :D

9/18/11 Options Predictor Rank #76. P/C Ratio 0.224 and Call Sizzle 3.927.

Industrial sector should see significant business improvement over the next five years.

Way oversold

Well diversified company, former S&P 500 stock. Best price to buy since Oct of 2010. All-Star Outperform ratio of 382 to 3. Schlage & Kryptonite solid lock manufacturers. Higher costs for HVAC drove down price temporarily.

I like IR for 3 reasons: 1) margin upside related to post-housing crisis volume leverage, cost reduction programs initiated by new-ish management, and "promises" from management for 15% OM in next couple years, 2) Buying at the trough of US resi and commercial construction cycle, 3) very strong dividend growth expected & share buyback plan.

Buying on the big decline post Q2 seems like a good starting point.

Operational Excellence basket

They were a bit early on Trane as they stock got dumped in the crisis, but IR didn't lose anything, leaving them perfectly positioned for China's Go West - and with it, a boosted stock price

i said it before, and i still love these guys because...

So there i was, in the middle of nowhere. small town usa, in a car dealership's (a customer of mine) parts department. barely making their bills, family owned for 80 years. i'm looking for something when all of the sudden this giant air compressor (that i managed to not notice or care about) kicks on and nearly gives me a heart attack. I walk over, clear the grime off the name plate and read Ingersoll-Rand. I ask my customer about it, and he goes into a 45 min story about their decision to buy that way back when his grandpa was still running things. Grandpa said to spend a few more bucks, because it will last longer. Grandpa was right. Walking out of there feeling pretty good about things, i asked him if he knew that his schlage door handles were also IR. He smirked and said "figures. the door handles are orignal, too."

-True story

Can't replace refrigerated trucks transporting refrigerated products with digital technology.

IR is hardware manufacturing that is oriented to business solutions for infrastructure capitalization and growth, but additionally has a heavy commercial and residential security customer base it is targeting globally. It's recent acquisition of TRANE corporation has created duplicity of human resources that are undergoing reorganization and houskeeping. I feel internal politics of this company is detracting from customer focus which in this stagnant market climate will retard, if not diminish, share growth even as the worldwide recession eases.

"boring" like K-Tron (KTII), though much much bigger. I wish they had less debt, but hey, it has a 5 star CAPS rating so that eases my concerns some. I'm reloading at a slightly lower price.

wtfbbq

Through debt reduction and the turning of Trane acquisition