InvestorCP

KHD Humboldt Wedag: An Undervalued Winner

I am also long on this stock. I have focused on it for organic growth reasons specifically targeting the eastern european developing economies. Its a speculative buy to a great degree, but its currently has a nice margin of safety on the cash and probability of growth falling to levels that do not justify a better multiple is low. I do share the same concerns around overbuilding in emerging economies, and the management personalities involved here. Its a risk I have decided to accept given the potential of the target markets and KHD position within.