Asmus Puhl Finance Blog

This company is restless.  Just some days ago Colfax Corp. (NYSE: CFX) released its FY 2013 earnings results.

Today they announced another major acquisition to complement the ESAB business. They are buying Victor Inc.,  a pre-eminent global manufacturer of cutting, gas control and specialty welding solutions.

The seller agreed to sell Victor for $ 947 million in cash. 

At the same moment BDT Partners has converted its preferred shares of Colfax to common stock.

As a part to finance the deal Colfax announced a public offering of its own common stock.

So once again busy times are ahead for the integration and optimization expert team of Colfax applying their Colfax Business System “CBS” tools!

This company remains a buy on any weakness!

Markel Corp. (NYSE: MKL) released its FY 2013 results!

This is the link to the press release!

Colfax (NYSE: CFX) released its Q4 and FY 2013 Earnings the 6^th february and hold its conference call the same day. As always Seeking Alpha published the transcript.

The numbers are good news! Colfax is marching forward by its plan!

Q4 net sales increased 14.0% (10.2% organically) to $1.171 billion. The company experienced a record backlog of $1.6 billion in the gas and fluid-handling business, which was driven largely by recent acquisitions.

Operating margins increased to 10.6% in the fourth quarter, as compared to 8.7% in the prior year.

The Charter acquisition has been successfully integrated.

And thanks to the continued adoption and deployment of CBS tools across the whole organization free cash flow jumped 260% compared to 2012!

On the conference call CEO Steve Simms highlighted one great example of a CBS tool. During the first quarter of 2013, the newly created strategic sourcing team was able to implement a world class „Spend Analytic system“:

„With this new system we are now able to classify and analyze our spend data across 150 different sites, in over 50 countries, with over 30 languages and currencies with each of our vendors. This has been an enabler in our ability to apply our CBS strategic sourcing Kaizen methodology to optimize our global spend in areas like motors, castings, steal, travel and energy.“

Colfax confirmed its 2014 guidance provided in Dec 2013 on the Annual Investor Day:

Total revenue will be within the $4.5–$4.625 billion range and GAAP earnings per share will be between $ 2.14 and $ 2.34 .

This translates into a p/e of 29 for FY 2014 earnings for a company which analysts estimate to grow by 25% annually for the next 5 years.

Thanks to the strong cash flow improvement the price/2013 free cash flow ratio is lower and stands at only 22.

Expect this company to march steadily forward and so will do the stock price!

Build up your position on weak days!

Colfax Corp. (NYSE: CFX) just released its Q4 and FY 2013 Earnings!

They beat analyst earnings and revenue estimates for the quarter as well as for the full year!

We will listen to the conference call: management seems rather upbeat for 2014!

Colfax Corp. (NYSE: CFX) will report its Q4 and FY 2013 results on Feb 6th before the market opens!

We will stay tuned!

This blog follows and explains 2 stocks:

No. 1: Colfax Corp. (NYSE: CFX) the fluid handling company. We started to follow Colfax in May 2009 when the stock traded at $ 7.27 . Today we are at an all-time high of $ 63.06, up more than 56% this year, beating the S&P 500 which is up “only” 31% so far and very near to a 9-bagger over the whole 4 1/2 year time horizon!

No. 2: Markel Corporation (NYSE: MKL) the insurance and superinvestor company which traded yesterday at $ 576.02, up 33% this year and also beating the S&P 500 index so far!

Background of this astonishing development certainly is the general improvement of the US-american economy. But do not forget solid leadership and the hard work within these 2 companies which will continue in 2014 and help our investments!

So let’s be grateful for 2013 and look forward to 2014!

We wish a Merry Christmas and a Happy New Year to all our readers!

Enjoy the holidays with your families!

Yesterday shares of Colfax Corp. (NYSE: CFX) reached a new all-time high at $ 62.09 after the company published the presentation and a audio replay of its Annual Investor Day on Dec. 17th!

Investors seem to like what the company had to say!

Colfax stock is up 54% this year!

If you are already a shareholder, lean back and enjoy the ride, if not wait for a cheaper entry point!

Markel Corp. (NYSE: MKL) announced that its board of directors has authorized a new share repurchase program covering purchases up to $300 million.

At a price/book ratio of just 1.2 management obviously thought that the best investment for Markel are its own shares.

The market still seemed to be worried about the Alterra integration but the share buyback announcement helped the share price to climb 2.6 % within 3 days.

Why don’t you join Markel’s decision to buy their shares, they are cheap ?!

Colfax Corporation (NYSE. CFX) will host its Annual Investor Event on December 17, 2013, only a few days before Christmas!

If you are not too busy to buy Christmas gifts at that time you’ll have a chance to get valuable insight into this fine company at this event!

Markel Corporation (NYSE: MKL) likes to bore us with good results over many years as CIO Tom Gayner pointed out after a conversation with a longterm shareholder.

So let’s have a quick look at the “boring“ Q3 2013 results:

As always Seeking Alpha published the transcript of their 2013 Q3 Conference Call and the company published the 10Q.

Total operating revenues grew 39% to $3 billion in 2013, from $2.2 billion in 2012.

The increase is due to a 42% increase in revenues from the insurance operations which includes $531 million from the Alterra segment and a 41% increase in revenues from their non-insurance operations which they refer to as Markel Ventures, as CFO Anne Waleski explained.

As Alterra added 6 points the combined ratio was 97% for the first nine months of 2013 compared to 96% in 2012. This highlights the integration effort still to make with Alterra.

Book value per common share outstanding increased 14% to $462.33 in Q3 up from $403.85 at the end of 2012.

And now have a look at this:

In the first nine months of 2013, revenue from Markel Ventures were $486 million, compared to $345 million in 2012. Net income to shareholders from Markel Ventures doubled to $18 million in 2013, compared to $9 million in 2012!

The last couple of quarters we already learned about the rapidly increasing importance of Markel Ventures and now its share of EBITDA from the company rose 54% to $64.2 million, up from $41.5 million a year ago!

At yesterday’s closing price of $ 538.58 the market valued Markel at at price/book ratio of only 1.2

2 things will more than others drive results at Markel in the future: Further improving results from the insurance segments when Alterra Holdings will be successfully integrated and the ever growing importance of Markel Ventures.

This stock is definitively a buy at this price!