Alfa Laval AB (ALFVY)

(A Top Pick May 14/25, Up 4%)

(Note the short timeframe.)  He's buying right now. Company's been solid, dividend growth good. Tailwind of Swedish krona, the best-performing major currency in the world. Trades at 10-15x forward PE, very attractive.

Industries such as marine and food. Provides ways to be more efficient and less polluting. ROIC is 15%, WACC is 9%, leaving lots of FCF. As dividends grow, share price will follow. Swedish company, but does business all around the world. (Price in Swedish krona.) Yield is 2.05%, growing at 12% a year. 

(Analysts’ price target is $433.15)

Continuously growing free cashflow, free cashflow equals net income so you get a cash conversion rate of 100%. Other companies don't meet this criterion. 13% organic growth on revenues, huge. Putting lots of money into R&D to achieve better ESG compliance. Very little debt, lots of free cashflow. Dividend growth around 10% range.

Believes company is good bet for investors looking for carbon removal technology. Drop in stock price has created a good opportunity to buy. Company generates a lot of free cash flow.

Engineering company making heavy equipment in energy, food, and marine. About 15x earnings, and in EM. So if US dollar starts to fall, EM economy should pick up. Dividend growing 10% a year. Good management. (Analysts’ price target is $229.06)