So now it is official:
Colfax Corp. (NYSE: CFX) sells its Air and Gas handling business to KPS Capital Partners for $ 1.8 billion!
Today’s stock market reacts favorably: Colfax share price is up 4.5% at the moment of this writing. This move will bring down debt and improve the balance sheet of Colfax Corp. !
Colfax Corp. (NYSE: CFX) released better than expected Q4 and FY 2018 results!
Q4 adjusted earnings in the fourth quarter were 69 cents per share.
Colfax’s net sales were $985.2 million, reflecting growth of 12.7% from the year-ago quarter.
Revenues from the Air and Gas Handling segment increased 9.7% to $410.3 million and Revenues from the Fabrication Technology segment totaled $574.9 million, an increase of 14.9% year over year.
Adjusted operating income in the quarter under review increased 34.1% year over year to $92.4 million and adjusted operating margin grew 150 bps to 9.4%
But Colfax is a company in transition!
They acquired DLO Global Inc. a global orthopedic solutions company and want to complete this transaction in the first quarter of 2019.
Furthermore they are looking for strategic options for its Air & Gas Handling platform which means they want to sell this segment.
So Colfax in one year will most probably look much different from today and today’s numbers will not be so meaningful.
Therefore Colfax should remain a Hold for investors until the picture becomes clearer:
Will they be able to successful integrate DJO Global?
Will they sell the Air and Gas Handling business at a good price?
Will management be able to lead a complete different business as medical solutions are?
Perhaps there will already be first hints at the end of the first quarter of 2019!
Markel Corporation (NYSE: MKL) reported Q4 and FY 2018 results.
Operating revenues came in at $6.8 billion for the year ended December 31, 2018 compared to $6.1 billion in 2017.
Comprehensive loss to shareholders was $375.8 million for the year ended December 31, 2018 compared to comprehensive income to shareholders of $1.2 billion in 2017.
Diluted net loss per share was $9.55 for the year ended December 31, 2018 compared to diluted net income per share of $25.81 in 2017
The combined ratio was 98% in 2018 compared to 105% in 2017.
Book value per common share outstanding the single most important ratio in the insurance industry declined 4% to $653.85 at December 31, 2018, down from $683.55 at December 31, 2017.
This was certainly a difficult quarter and fiscal year for Markel.
One problem was the steep decline of the stock market at the end of 2018. Therefore Markel had to recognize a comprohensive loss.
In addition the results were also impacted by a goodwill and intangible asset impairment of Markel CatCo operations.
The investment results weren’t so bad.
Net investment income surged 12.8% year over year to $114.5 million, driven by higher short-term interest rates, dividend income from equities, and higher interest income on the fixed-maturity investments.
The investment portfolio of Markel will always be more volatile than the one of other insurers as they maintain a rather high equity portion of 30% of total invested assets.
In Markel Ventures total revenue climbed 18% year over year, to $472 million.
Despite the above mentioned setbacks Markel looks optimisticly into the future:
The underwriting results for the year 2018 were positive, despite significant catastrophe losses.
In Q4 they completed the acquisition of Nephila of Bermuda, the industry’s preeminent insurance-linked securities investment manager. So Markel remains committed to there strategy in this market segment.
For investors the big picture and the long term perspective hasn’t changed at all.
Markel’s stock is valued at a price/book value per share ratio of only 1,6
At this price Markel remains a buy!
Colfax Corp. (NYSE: CFX) the fabrication technology and air and gas handling company released FY and Q4 2017 results which sent the stock 9% down on the day!
Everyone in these days is talking and discussing about the Greek crisis.
But another danger is already looming on the horizon: At the end of this week the US jobs report June 2015 will be released. If it comes out strong (which can be expected) this could mean that the Federal Reserve can no longer withhold rising interest rates!
This would mean that finally after years the change of the interest environment has arrived and interest rates at least in the US $ would start to rise again. Some days ago the yield of the 10 y – US treasury bond has already been near 2.5%.
So if rising interest rates would spread to the Euro what would be the effect on highly indebted European countries beyond Greece?
Which interest rate will investors ask for in order to be compensated for the risk to finance p.e. Portugal or Italy in an environment of rising interest rates backed by a strong US economy?
This crisis story seems to have more chapters than only the Greek one!
Colfax Corp. (NYSE: CFX) released the Q1 2015 Earnings.
Earnings per share were $ 0.03 ahead of expectations but revenue came in a bit lower than expected!
2014 comes to an end in a rather turbulent manner.
Shares are beaten down after the rapid slide of the oil price. Even shares of companies which profit from cheaper oil are beaten down highlighting how hysteria and speculation are influencing markets in these days.
Let’s keep calm! The most important is not to sell on panic but to stay in for the long term.
One of our long term holdings Colfax Corp. (NYSE: CFX) held its investor day on dec. 16th
The company issued guidance for 2015 below expectations seeing EPS of $2.20-$2.40 vs. $2.58 analyst consensus estimate and revenues of $4.525B-$4.675B vs. $4.8B consensus.
Colfax as an industrial company certainly is not immune against headwinds of the world economy but the company will continue to grow by acquisitions and growth investments.
I wouldn’t be surprised to hear them announcing an acquisition pretty soon.
Hopefully this will be in a sector which is not heavy industry and more independent of the economic cycles than there existing activities.
Stay tuned for more to come. CFX certainly is a buy at this price!
We wish a Happy and Peaceful Christmas and a very successful New Year 2015 to all our readers!
This blog follows the stock of 2 companies:
Colfax Corporation (NYSE: CFX), the industrial manufacturing and fluid handling company and
Markel Corporation (NYSE: MKL), the speciality and niche insurer.
So how did they perform year to date?
Let’s start with the worst: Colfax performance is a whopping -24% ytd … ouch …
Now the better one: Markel’s performance is +20% ytd beating the S&P 500 which performed 13.6% ytd.
Does this change our long term view of these 2 companies: … NO!
The investment thesis of Colfax is still intact: It grows by successful acquisitions and integration of the acquired activities getting them up to their efficiency levels.
On the conference call Q3 2014 CEO Steve Simms hinted at a full acquisition pipeline, so expect more. Insiders do the same and are buying shares!
Markel on the contrary got finally the performance it deserves I would say.
This reflects the successful integration of Alterra and slightly improving general conditions of the insurance market.
Both shares are a buy at these prices. Don’t forget, we are in for the long term!
Alle erwarten, dass die EZB demnächst ihr Kaufprogramm für Staatsanleihen ausweiten wird. Quantitative Lockerung also in immer stärkerem Ausmass im schwächelnden Europa.
In ganz Europa erreichen deshalb die Anleiherenditen neue Tiefstände. Die Rendite spanischer Anleihen mit zehn Jahren Laufzeit fiel erstmals unter die Marke von 2%. Italienische und portugiesische Anleihen mit derselben Laufzeit sanken in gleichem Ausmass.
Aber lässt sich allein mit monetären Massnahmen bei gleichzeitigem Ausbleiben von politischen und rechtlichen Strukturreformen Wirtschaftswachstum erzeugen, das die Staatsverschuldung wieder auf ein erträgliches Niveau sinken lässt?
Die historische Erfahrung spricht dagegen!
Die Staatsschulden haben wohl auch bereits ein solches Ausmass erreicht, das sie selbst bei stärkerem Wirtschaftswachstum nicht mehr innerhalb eines vernünftigen Zeitraumes zurückzuführen wären.
Deshalb überrascht es nicht, dass das Thema Beendigung der Schuldenkrise durch Restrukturierung und Erlass von Schulden zunehmend diskutiert wird, wie u.a. Jim Reid von der Deutschen Bank besorgt feststellt (siehe Valuewalk.com über seine Studie vom September 2014). Dies würde bedeuten, dass die ultimative Finanzblase unserer Jahre wohl die Staatschulden am Bondmarkt wären.
Und nochmals ein Blick in die Geschichte:
Als während der Lateinamerika-Krise der 1980er Jahre die Banken wieder ausreichend rekapitalisiert waren, wurde erkannt, dass die Staatsschulden der Region restrukturiert werden müssen. Den Anfang machte Mexiko, das den Schuldendienst im August 1982 einstellte.
Die vergleichbare Ausgangslage wäre in Europa jetzt gegeben: Nach Abschluss des Stresstests der EZB ist sichergestellt, dass das Bankensystem wieder ausreichend kapitalisiert ist!
Anlässlich einer Road Show von Tesla Motors machten wir eine Probefahrt mit dem Tesla Model S: Ein toller Eindruck!
Nicht nur das wir jetzt verstehen, warum dieses Auto die besten Kundenbeurteilungen erhält, und zwar von allen Autos seiner Klasse, nicht nur den elektrischen. Hier ist ja im Internet schon viel diskutiert und beschrieben worden.
Es ist auch ein spannendes Gefühl, wie unmittelbar der Wagen auf das Gasgeben eh.. ich meine Watt geben reagiert, nicht die geringste Verzögerung wie sie bei Diesel- oder Benzinfahrzeugen normal ist.
Völlig neu ist auch die Beziehung Hersteller – Kunde! Tesla Motors verkauft seine Fahrzeuge direkt ohne Händler an die Kunden.
Zum ersten Mal hat hier der Kunde das Gefühl, der Automobilhersteller interessiert sich weiter für den Kunden, wenn einmal der Wagen gekauft ist!
Tesla Motors (NMS: TSLA) wird morgen über seine Q2 2014 Zahlen berichten. Möglicherweise gibt es auch schon neuere Informationen zum Bau der Gigafactory für Batterien. Interessant wird es in jedem Fall!
