Opinions
David Driscoll
Rotork PLC
ROR-LSE
TOP PICK
Aug 08, 2013
Stock price when the opinion was issued
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Manufactures actuators. An actuator is a sophisticated way of saying an on/off switch for industrial applications, such as nuclear, water, energy, etc. Has a very strong balance sheet. Historically this has been one of the fastest-growing companies in the UK. Dividend yield of 2%. (Analysts' price target is $255.)
This is a UK industrial. They make on/off switches controlled through electricity, gas or oil. The applications are nuclear and refineries. When the Saudis tried to manipulate the price of oil the stock price suffered. They picked it up there and had a very good run since. Very strong balance sheet only 5% debt. Dividend is growing. Had a big run, you can buy this on a discount. Very good company.
Unlike big major oil companies, this is a company that makes valves and controls flow distribution for water, oil and gas. With the new technology, instead of having offshore rigs/platforms they can now go deep under the surface and they are starting to have all infrastructure down on the seabed floor. This is the biggest globally. Doesn’t have a lot of European exposure. Stock jumped this week because their profitability was up 13%-14% in a tough environment. Good time to be taking advantage of the stronger Cdn$ relative to the pound.