Writing about Swedish conglomerate Alfa Laval (OTCPK:ALFVY) (ALFA.ST) after first quarter earnings, I said, “Give me a 10% to 15% pullback and these shares get much more interesting as a potential long-term holding.” With disappointing orders in the second quarter and increasingly shaky investor sentiment around industrials, Alfa Laval shares have now pulled back a little more than that 15% target.
In the short term, there are still risks. Alfa is benefiting from record high orders in Energy, and I’m not confident that that is sustainable. Elsewhere, ship contracting has