Today's Cincinnati Enquier published a column by
syndicated columnist Bob Greene devoted to the wonderful
world of bearings and Timken. It's a fluff piece, but
may raise awareness and bring in a few investers.
Timken is a tapered roller bearing
Your point is well taken given that caveat.
roller bearings offer superior performance and longevity
to ball bearing in heavy duty applications: rail,
heavy truck, SUV....where Timken has a preferred
Ball bearings do not equal tapered roller
I believe that American express is the company that
Timken has retained for its 401k plan.
conclusion is perhaps valid if the term "ball bearings" is
replaced with "tapered roller bearings."
I take some comfort knowing that American Express
Financial owns over 9 million shares of Timken. They are by
far the largest institutional holder. Remember that
TKR is the premier company in industrial ball
bearings. All major machinery needs bearings to avoid
friction; some of TKR's higher end bearings even have
"smart chips" installed. The real potential is in this
value added component of the business. The real drag on
TKR has been its commodity business: Latrobe Steel.
They have retained an investment banker to assist with
strategic initiatives, ie. sale, combination, etc. When
this is resolved, look for a solid short term move in
the stock; the move will then become sustainable as
the fundamentals in ball bearings improves.
Sorry for not responding - I have been out of the
country (Europe). My feeling is that Europe is in a
recovery mode, but it is hard to tell if that means more
sales for TKR. Timken, as you know, has a big prescence
in Europe, so that should help. Asia is another
matter. China claims it isn't going to devalue because
they have very good foreign reserves. Japan seems to
be recovering, and certainly Korea is. The major
factor still remains worldwide overcapacity in the steel
industry. Timken does have a special market niche - perhaps
they should really shrink down to the bearings units
and get out of the general steel business. Aren't
they thinking about unloading Latrobe?
and change, TKR seem like a good buy at this point.
Do you think that we have had the correction? Is
Asia recovering or flaundering? Is now the time to buy
more TKR? I/m an old investor who believes in basic
Very difficult to decide what to do.