Long/short equity, value, special situations, growth

Bullish On Regal Beloit: Buying The Dip, Sentiment Lows, And Misunderstood Growth Potential

After reporting disappointing Q1 earnings a few weeks ago, shares of Regal Beloit (NYSE:RBC) plunged and are trading 23% below recent highs. The drop in the share price has created a "buy the dip" value investing opportunity. Regal Beloit has been a public company since 1976 and manufactures electric motors, electric generators and mechanical motion control products, mainly for the HVAC and industrial markets. There are three key parts to the story: [i] sentiment about the commercial and industrial market is now lower than it has been in a while, [ii] earnings expectations assume no growth and may be overly pessimistic and [iii] the company has a lot of balance sheet capacity to make acquisitions, boost the dividend...

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