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

Atlas (Copco) Sneezed

How best to frame what has happened to Swedish industrial conglomerate Atlas Copco (OTCPK:ATLKY) in the six months since I last wrote about it? The roughly 25% drop in the ADR share price goes well beyond an Atlas Shrugged reference … we're talking full-on sneezing if not a pulled hamstring.

Some of this share price decline seems reasonable to me. First, Atlas has often carried a pretty healthy valuation and that's harder to support in a virtually no-growth environment. Second, the outlook for mining is feeble at best, while the "general manufacturing" segment served by the company is looking quite weak indeed and particularly so in the U.S. and China.

If you believe in buying good companies

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