The Timken Company (NYSE:TKR)

Here's another undervalued cyclical stock. Snatch'em up while you still can!

Yesterday the activist hedge fund Relational Investors announced that it has established a 6.4% stake in Timken (TKR). Relational is pushing Timken to spin-off its steel business.

Deej

Value
Low debt,
Good Cash balnce
Cheap for fundamentals.

cheap power

Consistently producing owner earnings, and selling below intrinsic value. Nice CROIC over the TTM.

Timken makes the best bearings in the world. Stock pays a decent dividend. There was no particular reason to beat up on the stock this year. I expect ~$60 value.

local canton co. opening a new steel plant to make thei own ingots...a union plant.

A consistent winner.

buy local

growth in manufacturing and infrastructure will increase demand for Timken products. Agressive dividend history will help stock price appreciation as well

12/11

Timken is a strong, conservative, 110 year old company with a solid dividend and a compelling global growth strategy.

A superbly run company with a stellar balance sheet and high insider ownership. The aging commercial jet and railroad segments will provide growth when capital budgets loosen up, as they must. Additional growth will come along as rail infrastructure is expanded.

This company has a lot of managment problems they tend to think of only how to make more profit at the expense of thier employess. by doing this they have created a very bad moral problem at all thier plants. the magament has shown now signs that they know what is going on in the company plants only that they make a profit no matter what the cost. until this attitude changes i think the company will be had press to make it in this market they are forcing alot of experencice people out and replaceing them with people who know nothing about the basic busness that they are in.

Cyclical action in an uncertain market in an adverse environment.

Timken has internal problems, they're going through a seemingly chaotic re-organization, and personally I see little innovation from their current leadership and virtually no vision. It is as though the company as a whole is stagnating, which will only get worse since the Automotive Sector (their bread and butter for years) is drying up on them. Although they make a good product, their executive decisions are marginal at best. Timken's recent massive reduction in workforce and plant closures do not indicate to me that they are all that stable of an investment. Yes, they will survive as they have for over 100 years, just don't expect anything noteworthy from TKR. Past trends and upswings don't mean a thing in this economic climate. And Wind Turbines, something Timken is banking on, is not their answer now that fuel prices have dropped to acceptable levels and the alternative energy demand has died down again.

It is a solid company with good historical earnings. In a growing economy focusing on rebuilding infrostructure, high quality steel will be in demand.

Good growth and future earnings.

Value. Low PE, low debt, good yield, trading below book.