Asmus Puhl Finance Blog

Seeking Alpha published the conference call transcript of Colfax Q2 2013 Conference Call.

Colfax revenue grew to $ 1.07 billion, a little less than analysts had expected, but diluted EPS came in at $ 0.53 ahead of expectations.

Operating margin improved strongly from 5.8% in Q2 2012 to 10.4% in this year`s second quarter. Net margin improved even more from a not adjusted 1.8% to 6.2% this quarter!

So what’s behind these numbers?

This quarter was all about operational improvements applying the „Colfax Business System (CBS)“!

The economic climate remains difficult as revenue growth of just 2.7% clearly demonstrates. And this will not change as the company anticipates, even if there is significant variation across sectors: „subdued activity in mining and the continued deferral of oil and gas projects are expected to offset the strong order growth we anticipate in the Power Generation end market.“

Other financial key numbers were strong either as CFO C. Scott Brannan pointed out: Operating cash flow was strong for the second quarter at $86 million. Inventory balances decreased $37 million and working capital, as a percentage of sales, decreased to 17% at quarter end.

But perhaps the most interesting hint CEO Steven E. Simms gave on the call was that there is a reasonable possibility that some acquisitions may close in the second half of 2013!

Don’t forget, they issued 7.5 million new shares of common stock on May 10 and they want to deploy that money rather sooner than later.

The company’s guidance is for adjusted EPS of $1.95 to $2.10 for 2013 without the effect of any acqusitions.

This translates into a p/e ratio of 26. Not cheap certainly, but don’t forget, this company is able to surprise us even if the economic climate remains difficult!

Colfax Corp. (NYSE: CFX) the fluid handling company today reports results for Q2 2013, slightly exceeding analysts estimates.

Have a look!

Colfax (NYSE:CFX) stock  reached $ 52.63, a new 52-week high on Friday 14th of june as reported by Zacks!

This upward movement is driven by increased analysts earnings estimates and a strong general stock market.

Zacks consensus estimate now expects earnings of $2.00 per share in FY 2013 which puts the p/e ratio on this stock at 26.

… not cheap but not outrageously expensive either.

Colfax stock stood at $ 7.27  in May 2009 when this blog started to follow it:

Until today a performance of 624%, more than a 7-bagger !

Cheers!

Colfax Corp. (NYSE:CFX) announced a public offering of common stock and yesterday announced the pricing of this offering:

$ 44.25 per share

The market looks favourably at this: Colfax stock trades above this price at $ 45.40 at this moment!

Markel (NYSE:MKL) is off to an excellent start in 2013 commented Chairman and CEO Alan I. Kirshner on Markel’s 2013 first quarter results.

So let’s have a look at it:

Diluted net income per share came in at $ 9.50 ,more than $4.18 better than analysts estimates!

The combined ratio fell from 100% last year to 91%, clearly demonstrating Markel’s underwriting discipline.

First-quarter revenue rose 12% to $820 million. A 6% increase came from revenue from insurance operations and a 67% increase came from Markel Ventures, underlining the ever growing importance of Markel Ventures within the group!

Book value per share increased 7% to $ 431.10

And after this excellent start it goes on:

Markel announced the same day that they have completed the acquisition of Alterra creating an insurance company with approximately $23 billion in combined assets and $6 billion in shareholders’ equity!

This will add 2 entirely new business segments to Markel together with their talented underwriting, claims, and support teams: Markel Global Insurance (large commercial accounts) and Markel Global Reinsurance.

But certainly of equal importance is that chief investment officer Tom Gayner has a much bigger capital basis (stockholders equity + „float“) to successfully invest than in the past!

On the earnings call CFO Anne Waleski highlighted once again the rapidly growing importance of their non-insurance operations called Markel Ventures: In Q1 2013 revenue from Markel Ventures was $162 million as compared to $97 million in 2012, now already representing 20% of total revenue of $820 millions!

Net income to shareholders from Markel Ventures „exploded“ to $4 million in 2013 compared to $200,000 in 2012.

Markel today appears more promising than ever!

Cheers!

Markel Corp. (NYSE: MKL) released its excellent Q1 2013 earnings!

Markel also announced the completion of the Alterra acquisition, a big step ahead for Markel!

As always Seeking Alpha published the transcript of their conference call.

Have a look!

As always Seeking Alpha published the conference call transcript of Colfax Corp. Q1 2013 Conference Call.

Adjusted EPS for the 2013 first quarter came in at $0.26 per share, an increase of 13%.

Net sales were $947.1 million, an increase of 6.8% from Q1 2012 net sales of $886.4 million

Sales in the gas- and fluid handling segment were 2% lower compared to last year’s first quarter, but fabrication technology segment grew revenue by 13,2% year over year to $522.0 million

The most interesting news this quarter certainly is how the company is improving margins!

Colfax’s gross profit margin in the quarter was 30.7% in the quarter, increasing 340 basis points year over year and the adjusted operating margin is now 8.3%

They are applying their cost control measures called „CBS“ – Colfax Business System – to all recently acquired segments and companies. They will continue to apply these measures over the year even repeatedly and therefore are able to confirm their 2013 earnings guidance.

Colfax stock yesterday rose about 1% on an otherwise down day of the stock market to $ 46.21

It now sells at a p/e of 23, not cheap for an industrial company. 

If you want to build a new position in Colfax you probably should wait for better days!   

Colfax Corp. (NYSE: CFX) released its Q1 2013 earnings!

Have a look. They beat analyst expectations by $ 0.02 (… for what it’s worth)

Einer der Grundpfeiler der EU war und ist immer, dass sie eine Gemeinschaft des Rechts ist. Deshalb wurde ja auch von Anfang an mit dem Europäischen Gerichtshof eine eigene Justiz geschaffen, die über die Jahrzehnte Enormes geleistet hat bei der Durchsetzung der Grundfreiheiten- und prinzipien des EU-Rechts in der gesamten Gemeinschaft.

Genau diese fundamentale Errungenschaft des Vorrangs des Rechts aber hat der Beschluss der Euro-Finanzminister zum Hilfspaket für Zypern jetzt unterminiert:

Zwar kann man durchaus Gründe dafür finden, dass die Einleger der zypriotischen Banken sich an der Rettungsaktion beteiligen, denn die Krise kommt ja aus dem überdimensionierten Finanzsektor, aber dies kann doch unmöglich für die Kleinanleger bis € 100’000 gelten!

Was ist denn die europäische Einlagensicherung bis € 100’000 rechtlich wert, wenn sie durch eine Abschöpfung von geplanten 6,75% einfach ausgehebelt werden kann und dies auch noch als „Steuer“ dargestellt wird, die es ja in Wirklichkeit gar nicht ist?

Das neue Prinzip der EU für die Eurozone scheint vielmehr zu heissen, sind die Staatskassen einmal leer, ist fast alles legitim und der Rechtsstaat hat gefälligst in die zweite Reihe zurückzutreten! Staatsbankrotte sind um jeden Preis zu vermeiden, damit dafür kein Politiker die Verantwortung übernehmen muss!

Warum haben wir nicht längst eine europäische Insolvenzordnung für Banken und auch für zahlungsunfähige souveräne Schuldner?

Dann gäbe es einen verlässlichen Rechtsrahmen, der wie hier im Falle von Zypern zur Anwendung käme. Stattdessen hangeln wir uns von einer „unique measure“ (Griechenland) zur nächsten (Zypern) und dann bald sehr wahrscheinlich zum nächsten Fall von „exceptional nature“.

Der Gefahr des Vertrauensverlustes ist natürlich jetzt zunächst mal das Bankensystem ausgesetzt, aber mittel- bis langfristig wird eben auch das Vertrauen in die geltende Rechtsordnung der EU untergraben!

Politik soll jetzt wohl Vorrang vor dem Recht bekommen – Auf der Grundlage der Erfahrungen von Gewalt und Diktatur im 20. Jahrhundert hatten die Gründer der Europäischen Gemeinschaften dies gerade anders herum konzipiert!

Shareholders of Markel Corporation (NYSE: MKL) and of Alterra Capital Holdings (NASDAQ: ALTE) approved “overwhelmingly” the acquisition of Alterra by Markel which in reality has more the character of a merger than an outright acquisition!

Markel’s share price which suffered a lot after announcing the planned acquisition in December recovered since then.

But at yesterday’s closing price of $ 492.16 Markel is still valued at only 1.2 times their December 2012 book value per share of $ 403.85 and the post acquisition combined price/book value per share doesn’t look very different.

So why not snap up some shares at this cheap price?