If you buy charts, gdi is not for you! It has set a new 52 week low in 14 of the past 30 trading days. This is odd because its closest peer, Weir Group in London hit bottom with the market on October 4, 2011. What's stranger still is that GDI has not been this cheap relative to Weir since the Mar 2009 bottom.
What else doesn't stack up? Gdi bought lose to 2% of its float in April alone and the CEO bought 5,000 shares back in Mar 2012 at $69.50. So the Board clearly thinks the stock is cheap.
How about this - UTX is looking to sell its pumps and compressor businsses and bids are indicated at 9-11x ebitda while gdi sells for half that!
If you screen all industrials globally for companies with the high returns that GDI boasts and its low valuation you find there are few that can also boast the growth profile it has - I know because I've done it.
At some point smart money will step in (Bridgewater started in Q1) if there isn't a strategic take-out in the $105 range before that.
But then again, who wants to buy a chart that looks like that?