Air Liquide SA (AI-FP)

This is an oligopoly. There are four companies in the industrial gas space and one of them, Praxair, is being acquired. Air Liquide is the biggest company in the world in this space. He considers this a great company that has been a solid performer for a long time. (Analysts’ price target is €114.38)

Has always been very impressed with this company. They have a very strong discipline and understand their business. Exposed to industrial Europe and if Europe is recovering then he thinks this should recover. Track record of growth has been very consistent.

Okay for a long term hold. 20% global market share. Their plants are often baked into the plants of their customers. Hard for their customers to leave. Things have been great for many, many years but now it has become a more capital intensive business. Fine for a long term hold. Not a cheap stock and will benefit somewhat from economic recovery.

This is doing fine. It provides for hospitals, etc. Relative to US companies, they are having pricing competition in Europe. In their most recent quarter, earnings weren’t great and sales were down because of the currency. It is important for investors to look at these European companies, as to how much exposure they have on the European continent. Having to do some cost-cutting in Germany, France and Italy to deal with cheaper prices that are going on in the US. Good company and have been able to grow their dividends well over time. Yield of about 2.5%. Wouldn’t have any problems owning this.