Comments on: Time to invest in a manufacturing business

By: In Case You Missed It: Alaskan Independence Day and Other Good Tidbits | MoneyEnergy

Sat, 04 Jul 2009 11:01:25 +0000

[...] Arohan’s Investing Life – Appropriately titled, this is @Arohan’s personal investing blog, which offers “commentary on investing and events with a value tilt.” Check out one of his most popular posts: “Time To Invest in a Manufacturing Business.” [...]

By: Raj Krishnaswamy

Raj Krishnaswamy — Sat, 17 Jan 2009 11:59:15 +0000

I agree with you in that the manufacturing sector has been grossly undervalued. Even small manufacturing companies like machine shops are under severe duress now considering economic conditions but those that have the staying power and stamina to get through with this recesion will boom in the coming years. I am heavily involved in manufacturing and am very optimistic about the long term future, but very aware of the short term pains. Thank you.

By: Richard Becker

Richard Becker — Tue, 06 Jan 2009 21:54:35 +0000

Very bright take on the economic situation and what to look for in the months ahead. I especially like the idea to look at companies that may benefit from the public works projects. It makes sense.

In addition to manufacturing, basic consumer products will likely survive as well as companies that serve public sector (eg. emergency services) or need-based services (eg. plumbing). I’m keeping a keen eye on communication, which is often the first tell if a company is heading toward trouble. Too much spin, and they won’t win.

All my best,
Rich

By: RightMan

RightMan — Thu, 01 Jan 2009 12:18:54 +0000

Though I like Sterlite as a company, I am little apprehensive about its management. RightMan's last blog post..Weight loss cooking tips

By: desperateblogger

desperateblogger — Fri, 26 Dec 2008 09:35:42 +0000

great post. learned a thing or two about investing in manufacturing businesses. thanks for sharing. desperateblogger's last blog post..Christmas Eve

By: Hendro

Hendro — Mon, 22 Dec 2008 14:59:14 +0000

This is a good information. And the explanation why you choose the manufacturing business is rational. Thank You Hendro's last blog post..Debt Consolidation Information, Consolidation Debt Settlement Service May Be Better

By: Arohan

Arohan — Mon, 22 Dec 2008 14:33:30 +0000

@Rick, jeflin, bartolomo, thanks for the comments. I have taken positions and am steadily adding to them. It might take a while before the sector starts benefiting from the new projects but that is okay as it just gives me more time to accumulate.

As for the construction sector in China, I think it will come back up soon as the Chinese have also indicated that they want to spend their way out of this slump.

Steel prices are volatile but as someone who makes a living out of steel, I fully believe that the long term trend is up.

By: bartolomo

bartolomo — Fri, 19 Dec 2008 03:20:13 +0000

I own both IR and CAT and while I'm in at much higher prices, I agree that they should benefit greatly from infrastructure spending. I have recently been adding to positions. bartolomo's last blog post..Top Ten List of U.S. Unemployment

By: jeflin

jeflin — Sat, 13 Dec 2008 07:08:36 +0000

Taking positions in steel and construction seems like a good idea so long as their debt exposure is low. They will definitely benefit from the massive infrastructural spending proposed by Obama. However, China will also need to boost its construction sector too before steel prices recover from its slump. jeflin's last blog post..Treasury Bills Developing Characteristics Of A Bubble

By: Rick Vaughn

Rick Vaughn — Fri, 12 Dec 2008 23:42:56 +0000

Good Post! I think your right about the Manu sector. Mainly because people are going to be skeptical on anything but this sector. Ingersol is a great company just not sure how soon the credit markets are going to recover. Certainly, helps that Buffett gives it a thumbs up! Rick Vaughn's last blog post..A Long Dark Road