Carlisle Companies (CSL) has, since June '07, a new CEO, Dave Roberts, who formerly ran Graco (GGG). While at GGG, he boosted ROE from an already high low ~40's to the upper ~50's, which was reflected in a substantial rise in the stock price. His stated goal is to boost revenue from $3bil to $5bil and ROE from the low teens to the mid-20's in a 5 year time frame. Success at achieving these goals should result in $8/share EPS vs. ~$2/share currently. Should inflation remain in check and the economy recover, an estimate of 5% Market Cap Rate (MCR) would predict parity pricing about $160/share. Inflation of 4% vs. 2% estimated would give an MCR in the ~7% range and a stock price closer to $110-$115/share range.
The 2Q09 report indicates that Roberts is having success at implementing his lean manufacturing concept at CSL.
CSL mainly manufactures rubber products (roofing and off road vehicle tires) and has smaller specialty truck trailer, wire harness and food service equipment businesses. Roberts is looking for acquisitions much like what Roper (ROP), Dover (DOV) and Danaher (DHR) have used to build larger companies from multiple businesses by applying an efficient management process to under-managed situations. Roberts calls his process the COS.
Disclosure: The author is long CSL, DOV, ROP, ITW, JCI and DHR which were bought within the last 12 mos and which he expects to hold for the next 3 to 5 years.