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

A More Focused Sulzer Should Be A Better Sulzer

Leading pump manufacturer Sulzer (OTCPK:SULZF) (SUN.VX) hasn't been on the best run of late. Relative to fellow pump players Flowserve (NYSE:FLS) and Weir Group (OTCPK:WEIGY), Sulzer's performance over the past year (up about 4%) has been pretty poor, due in very large part to a huge miss with second quarter earnings and a three-day fall of nearly 20%.

Admittedly, the company's guidance for fiscal 2013 isn't exciting - sales and order growth in the low single digits - and Sulzer's margins and returns on invested capital have been stepping lower since 2008. That said, this company has 20% to 50% share in its core pump markets and a decision to refocus around its pump...

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