Savings Experiment: Snow Removal
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?"Old-fashioned American industrial companies that are poised to benefit from growing international markets will be good investments in 2010," explains Daniel Frishberg,
The host of Bizradio and editor of The MoneyMan Report adds, "Our latest buy recommendation is Timken Company (TKR), which fits perfectly into this model."
Frishberg explains, "Our current strategy is to participate in global growth through U.S. companies poised to benefit from money we expect to see flowing into the U.S. stock market in the coming year.
"We specifically are targeting companies with large exposure to international trade. We are also risk to reward, not just sheer growth.
"Anyone can make great returns intermittently by taking excessive risk, but the odds are it will eventually catch up with them. Long term success can only be achieved by balancing risk and reward.
"Timken Company has been located in Ohio for over 100 years and have been on the NYSE since 1922, but they have operations in 26 countries. They have paid a dividend for the last 350 quarters.
"They are the world leader in bearings, the essential component in anything that moves. Their products are fundamental to many industries (automobiles, defense, energy, medical, mining, construction, transportation, etc.) so they are positioned to benefit from an increase in economic activity in any area.
"Revenue was down 40% in 2009 due to lower demand, but they predict large revenue and profit increases for 2010. TKR is a stable American company that provides essential products for global growth. It is currently trading just slightly above book value.
"The stock may not be the largest gainer over the coming year, but we think it has one of the best risk/reward profiles right here, right now."
Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stocks of the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
1-20-2010 @ 2:50PM
Kent said...
I lost track of Timkin but glad to hear they are still around or otherwise, the U.S. would be beholden to foreign suppliers of steel bearings. I was involved in this business and knew at the time Japan's NTN and NSK combined had the largest marketshare in the world. One of the product gaps Timkin had at the time was that they did not supply ball bearings, but rather supplied roller bearings so our company had no choice but to refer our requirements to NTN and NSK. I would not be surprised that China is taking up the slack today and in the future.
1-20-2010 @ 3:39PM
Iridium said...
Timken is in the process of shutting down most of its US operations. Ask anyone who lives in Canton OH and they will tell you that Timken is not in very good shape at all.
Timken can only generate profit through complete and total outsourcing of all of its production. They will leave a small plant open to produce bearings for military applications and keep their R&D center. Everything else is toast.
Now this will probably be great for the stock because operating margins will be higher and perhaps overseas sales will increase.
The problem just like most of the corporations recommended lately is that success for them doesn't necessarily mean success in America.