Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Without Emerging Market Growth, FLSmidth Stuck In Cement

China's break-neck infrastructure development over the past decade seriously distorted multiple commodity and resource markets, and now companies are scrambling to figure out what the "new normal" actually is. Companies like Caterpillar (NYSE:CAT) and Joy Global (NYSE:JOY) have been fairly circumspect with guidance, and major miners like Rio Tinto (NYSE:RIO) and BHP Billiton (NYSE:BHP) have been pulling back on their capex plans.

That brings us to FLSmidth (OTCPK:FLIDY) - a global engineering company that provides an array of equipment and services for the cement and mining industries. Barring a significant re-acceleration in demand for cement, coal, and base/industrial minerals, it's hard to see why this company deserves a higher multiple....

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details