Archive for February, 2011

Colfax has a bright future!

February 18th, 2011 Comments off

Colfax (NYSE:CFX) Q4 2010 adjusted earnings came in at $ 0.39 which beat analysts estimates of $ 0.33!

This already is tradition with Colfax which has consistently beaten estimates for the past 5 quarters!

Colfax is a fluid handling specialist wich produces a great variety of pumps for all industry purposes. So Colfax not only profits from a rebound of the global economy but also from an enormous demand by the oil and gas industry.

But Colfax is also a serial acquirer of smaller companies which they integrate rapidly and smoothly into the group. They call this the „Colfax Business System” which is modeled after the „Danaher Business System”. We already explained it in this blog.

So it’s not suprising that Colfax together with the financial results of 2010 announced another acquisition, this time  a  Dutch premier supplier of multiphase pumping technology.

4th quarter earnings adjusted for cost of asbestos litigation were 47% higher than in Q4 2009!

Sales have risen 27,5% in 4th quarter, too.

But equally impressing is the improved working capital management which has helped

to improve cash flow from operating activities by 60% year over year!

Colfax has a bright future, there can be no doubt about it!

Earnings / share in FY 2011 are expected to be about $ 1.15 which translates into a p/e of 19.5

Price to 2010 free cash flow stands at 19.5 too.

So why not wait for some weak days to buy some shares of this high quality company?

This blog follows Colfax since May 2009 when the share price stood at $ 7.27!

Since then this stock performed 208%……and this story is far from over yet!

Enjoy the ride!

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Colfax Corp. reports Q4 and FY 2010 results better than expected!

February 15th, 2011 Comments off

Colfax Corporation (NYSE:CFX) today reported Q4 and FY 2010 results!

Have a look! We will dig deeper into these numbers later on!

They beat analyst estimates on earnings and on revenues and the stock is already up 14% to $ 21.60 in an overall weak market!

Enjoy the ride!

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Markel had an impressive year 2010!

February 4th, 2011 Comments off

After listening to the FY 2010 conference call of Markel Corporation (NYSE:MKL) one simply remains impressed by their discipline and their committment to build strong value to shareholders as few others!

Markel today rests on 3 pillars to realize shareholder value:

1. The first is obviously the insurance section.

The insurance market overall has been competitive and soft in 2010 and they anticipate that it will remain so in 2011!

Gross written premiums have been just under $2 billion.

The combined ratio stood at 97% which is very good after realized losses from the Chilean Earthquake and from Deep Water Horizon.

Markel never sacrifies profitablity for growth! Don’t forget that!

2. Investment section

This section just had a fantastic year!

They gained 8.1% in local currencies or 7.9% after conversion into US$, even as they sacrify return by buying bonds of shorter maturities in order to protect them against rising interest rates.

But the best is the Equity component of their investment portfolio:

Up 20% compared to a 15.1% rise of the S&P 500 index!

Over the last 5 years they had a return of 6.2% and over the last 10 years a return of 7.6% clearly outperforming the S&P500 index!

3. Their third pillar is Markel Ventures,

which invests in private high quality companies.

This is still a rather small part of Markel Corporation with its $185 mil revenue in 2010, but watch out!

They profit from a high reputation and confidence just in the way Berkshire Hathaway always did and they have the same investment criteria!

For more details about the FY 2010 results please listen to the conference call.

Markel’s book value/share is at an all time high of $326.36. The stock trades at a price/book value of 1.3

…..still doesn’t seem very expensive for a company many value investors consider the „next Berkshire Hathaway”!


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Markel’s Earnings FY 2010 are out!

February 3rd, 2011 Comments off

Markel Corporation (NYSE: MKL) published its FY and Q4 2010 Earnings Release!

So please head over to their Investor Relation Site!

Book Value/share was $326.36 at the end of FY 2010, an increase of 15,5% compared to book value of $282.55 at the end of FY 2009.

The stock market reacts favourably to these news on an overall weak day caused by the events in Egypt.

MKL is trading at $407 which translates into a price/book ratio of 1.2

…still not very expensive!

We will dig deeper into these numbers later on!


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