| MagicDiligence Tue Feb 12, 2008 11:16 am |
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Graco - GGG Graco is a niche industrial supplier of fluid handling products, like paint sprayers, food dispensers, adhesive application tools, grease guns, etc. They dominate this niche, and their proprietary designs generate good sales on replacement parts. This provides a sustainable competitive advantage and repeat sales, two things Buffett loves.
The company is well run and cheap right now at 15 P/E and 9.75% EBIT/EV, likely due to recession concerns in the US. But Graco has good international exposure too and will benefit from industrializing countries overseas. It's also a top 50 large cap "Magic Formula" stock.
More:
http://magicdiligence.com/MagicDiligence.com/Graco_Inc_-_GGG.html |
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