Cheapest opportunities out there.
Sold half my Smiths a few days ago…
Original post here https://deepvalueinvestments.wordpress.com/2015/12/28/smiths-industries-large-conglomerate-discount/
Price has risen about 50% making it a much less attractive idea. They are also considering aquisitions – something I instinctively dont like.
I have put in about 12% of the portfolio into Smith’s Industries at 932 This is a FTSE100 listed Engineer involved in oil and gas, medical, detection and interconnect related businesses amongst others…
It has a market cap of £3.7bn with 818m of debt the pension deficit is circa 108m . In 2013 Smiths got a £3.1bn offer for the medical division, in 2012 an offer of £2.45bn was made. Both were turned down. The medical division is earning more now and multiples are higher across most medical device producers. Continue reading “Smiths Industries – large conglomerate discount”
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