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

FLSmidth Doing Better Than Expected Through The Trough

Given the low liquidity in FLSmidth's U.S. ADRs, investors may wish to consider the Danish shares (FLS.CO) instead.

I may have been right about the serious impending erosion of orders, revenue, and EBITDA at FLSmidth (OTCPK:FLIDY) when I wrote about the company in June of 2013, but I missed the extent to which investors would cheer the company's cost-cutting and return improvement efforts. With the shares up 30% over the past year in U.S. dollars (and about 10% in the local Danish kroner), FLSmidth has handily outperformed most of its mining capex peers like Outotec (OTCPK:OUKPY) and Metso (OTCQX:MXCYY), as well as Joy Global (NYSE:JOY).

I continue to believe that FLSmidth is...

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