Colfax raises 2011 guidance !
Colfax Corporation (NYSE: CFX) today raised its guidance for FY 2011!
Organic growth will be between 6% – 8% thanks to the Rosscor Holding B.V. acquisition and they now expect to earn $ 1.12 to $ 1.22 non GAAP adjusted earnings instead of $ 1.00 to $ 1.10
This translates into a p/e of 19 to 20 for FY 2011 based on a share price of $ 22.50 .
This doesn’t seem cheap and I think this price would only be justified if Colfax can grow faster than 20% fueled by acqisitions.
As their business model is to do exactly that and we all expect more positive acquisitons it would certainly be a safer bet to buy Colfax shares when the general market dips next time:
Don’t forget your “margin of safety”!
By the way: this blog follows Colfax since May 2009 when the share price stood at $ 7.27 .
Until today it performed 209%!
Cheers!