67 WALL STREET, New York - August 7, 2013 - The Wall Street Transcript has just published its Deep Value Investing and Other Strategies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Bottom-Up Stock Selection - Value Oriented Strategy - Value Investing - Deep Value - Small Cap Investing
Companies include: ConAgra Foods, Inc. (CAG), Teleflex Inc. (TFX), AnnTaylor Stores Corp. (ANN), Thermo Fisher Scientific, Inc. (TMO), Life Technologies Corporation (LIFE) and many more.
In the following excerpt from the Deep Value Investing and Other Strategies Report, expert portfolio managers discuss their portfolio-construction methodologies and investment philosophies:
TWST: Would you provide us with a few examples of stocks that you believe are really representative of your approach?
Mr. Howard: Another company where we see value is Teleflex Inc. (TFX). We recently, in the second quarter 2013, increased our position to TFX. The business as it stands today has very little in common with its industrial roots. Within the past couple of years, management successfully completed its transition to a focused global medical products company, emphasizing single-use, disposable products that help improve safety, efficiency and patient outcomes.
We find their product suite to be particularly attractive, given hospitals' increased focus on preventing hospital-borne infections. Further, these are not capital-intensive and expensive products, so orders are less apt to be impacted when administrators are slashing budgets.
Operationally, there was less focus in TFX's old conglomerate structure on pricing, margin opportunities, or new avenues for growth than there is today as a medical company. We are attracted to the story because of TFX's innovative pipeline and the potential for significant synergies from recently acquired businesses, such as LMA, a global leader in laryngeal masks.
Further, we believe past management complacency on product pricing has created an opportunity for the company to boost pricing towards competitor levels without meaningfully impacting volumes. This type of dynamic can have a very positive impact on margins. Near term, investors have been concerned about the slowdown in European sales, which has crimped full-year pricing goals, somewhat. Still, we think there is significant ability to raise operating margins toward 20% over time, from the current 16% level, and believe this is a good entry point for investors...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
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