David Herro Comments on Smiths Group
- By Holly LaFon
We initiated one new position in the quarter and eliminated one holding. Both issues are U.K.-domiciled entities. We sold our holding in Smiths Group (SMIN.L), a conglomerate active in seals (primarily for the oil and gas sector), healthcare, detection and connectors. Smiths' new management team had a strong first year at the helm, highlighted by margin improvement at the detection division, the announced acquisition of Safran's Morpho detection business and a significant de-risking of its U.K. pension plan. We view these developments favorably, as do other investors, and the share price has risen nearly 50% in local currency. However, this increased price more closely reflects our view of the business' intrinsic value and thus we've found more attractive investment alternatives.
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The intrinsic value of LSE:SMIN
From David Herro (Trades, Portfolio)'s Oakmark Global Fund fourth quarter 2016 commentary.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 7 Warning Signs with LSE:SMIN. Click here to check it out.
The intrinsic value of LSE:SMIN