Cabot

Today instead of a Q&A with Roy, he’s going to elaborate on a stock that he touched on in yesterday’s post. Ingersoll-Rand (IR) is a global manufacturer of climate control equipment, energy efficiency systems and security locks and doors.  Products include Thermo-King walk-in coolers, Schlage locks, and Trane air conditioners.  The company has been divesting cyclical slow-growth segments, such as heavy machinery, and acquiring companies, such as Trane, that offer better growth potential.  Ingersoll is also expanding rapidly overseas to diversify away from its U.S. business (54% of sales). Management’s long-range plan to change Ingersoll from a cyclical company...

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Here’s the fourth question in our value investing Q&A series. Please send us any comments or questions. Question: I would like to buy IR at 38, when would I sell if it kept on going down?  Thanks. Answer: Thank you for your email regarding Ingersoll-Rand (IR).  The stock has been selling at a bargain at around 34 recently.  You have chosen an excellent company that will hopefully become a solid long-term investment for you.  The volatile market that we are in will probably cause some volatility in IR shares as well.  If IR drops 15% to 31.25, I advise...

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Here’s the third question in our value investing Q&A series. Please send us any comments or questions. Question: I bought Garmin at 44.  Shortly and suddenly, it went south about 10 points to 35.  What surprise caused such a precipitous drop?  I read that they are stacking up inventory instead of sales, and their new phone product is not ready on time, and they have competition from others cell phone products. I just subscribed recently and this is the first recommendation from you that I bought.   What do you think of the company’s ability to climb out of this...

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