Whether it's providing downhole drilling equipment, upgrading your industrial mixers, or seeing to the efficiency of your cosmetics production chain, there is a firm in Dayton, Ohio that's got you covered.
Robbins & Myers, Inc. (NYSE: RBN) provides equipment used for the industrial processing and management of fluids. Its Fluid Management segment offers hydraulic drilling equipment, slurry grinders, and wellhead systems used by oil and gas, specialty chemical and wastewater treatment firms. The Process Solutions unit makes glass-lined reactors, storage vessels, and mixing/agitation devices for the pharmaceutical and fine chemical markets. The Romaco segment provides equipment for the dosing, filling and sealing of vials, capsules, tubes, and bottles.
Investors were pleased earlier in the week, when the firm reported fiscal Q4 earnings per share (EPS) of $1.05 and revenues of $207 million. The Street had been looking for 84 cents and $199.6 million. Management also guided Q1 EPS to 54-64 cents (63 cent consensus) and Fiscal Year 2008 EPS to $3.30-$3.50 ($3.12 consensus). The CEO said that healthy end-markets were driving sales growth and that a successful restructuring program significantly improved operating margins.
The stock popped on the news and then moved into the initial stage of a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.
Brokers recommend the issue with three "strong buys". The RBN Price to Sales ratio (1.77), Price to Book ratio (2.99), Sales Growth rate (13.00%) and EPS Growth rate (64.06%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 78 percent of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $34.62 and $76.72. A stop-loss of $63.85, if one were to invest in this company, looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
