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

Waiting For That Next Chance On Lincoln Electric

Welding specialist Lincoln Electric (NASDAQ:LECO) has been a great investment for the long term, even with an ugly 2008/2009, as the company has reliably produced solid growth, margins, and returns on capital despite serving a cyclical, economically-sensitive end market. Management is far from content to rest on its laurels, and is already targeting growth opportunities in emerging markets and applications like automation.

Lincoln Electric has a habit of offering double-digit pullbacks, and these have generally been good opportunities to buy the stock. While I'm not a market timer, these shares don't leap out as cheap right now, and major welding rivals like Colfax (NYSE:CFX) and Illinois Tool Works (NYSE:ITW) are both talking of mediocre...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
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