Questor says BUY
The shares have continued to slide since then and they are now trading on a
single-digit earnings multiple. This is far too low for a growth stock.
Last week, the company held a well-received capital markets day. As part of
the presentation it confirmed that trading was “broadly unchanged”.
The rest focused on its use of a number of core fluids technologies across its
businesses. This niche market is good for companies such as IMI as there is
less competition and margins are higher.
The long-term drivers of this business relate to climate change, resource
scarcity, urbanisation and an ageing population.
First (OTC BB: FSTC.OB – news) recommended at 529½p on November (Stuttgart: A0Z24E – news) 10 2009, the shares have been tipped as
high as 853p. Trading on a December 2011 earnings multiple of 9.6, and
yielding 4pc, the shares remain a buy.