Danesh Rohinton Linde PLC LIN-N PAST TOP PICK Sep 30, 2024

It reports Tuesday. They supply industrial gas to hospitals, oil/gas, semi-makers, dollar stores and vinters. It does fine when the economy struggle and great when it thrives.

Their tech is used in carbon capture and clean hydrogen systems. It could be an idea for the future, but he's not a buyer of ideas, but of taking ideas and making them a viable business. Maybe LIN can do it or not.

Like many industrials, it had a great run, but lacked a blow-out quarter. LIN needs to show volume growth.

Its industrial gas makes it unique. Regional monopolies. Quality compounder. Allocates capital reasonably at high rates of return. Disciplined payout ratio, share buybacks. Reasonable valuation. Quality defense, benefiting from manufacturing renaissance. Yield is 1.2%.

Can benefit no matter the political landscape in the US.

An industrial, but classified as a materials company because they make industrial gases. Low beta. Mission-critical inputs. Long-term, take-or-pay contracts. A happy shareholder.

Largest industrial gas company in the world, estimated 30% market share. Competitive advantage is density of network and proximity to customers. Long-term, take-or-pay contracts, a guaranteed return. Supplies the healthcare, semiconductor, and green energy industries. 

Should do well in any sort of economic environment. Tends to grow earnings even in a recession. Well managed. She expects earnings to grow in range of 10%. Yield is 1.1%.

Has held stock for 10 years, and will continue to buy more shares. Believes company is under valued, with great future ahead. 

Classified in the materials sector, but she'd call it a soft cyclical. A lot of their services are recurring, which makes it more defensive. Very well managed. It can always grow earnings by high single digits, regardless of the economic scenario, as they'll adjust their prices to customers via pass-through contracts. Still, it needs economic growth.

With all the current turbulence, he'll take the modest gain as a win. Story hasn't changed. Decent dividend compounder and earnings grower. He'd still make it a pick today.