Sooner or later, mining and cement companies are going to have to invest in upgraded technology to maintain profitability and compliance with increasingly stringent government requirements. Unfortunately for FLSmidth (OTCPK:FLIDY) (FLS.CO), it’s looking more and more like “… or later”, and the company’s heavy reliance on large project-oriented orders is a definite challenge today.
Although FLSmidth’s valuation was not demanding back in December, I thought it was risky to buy these shares going into a cyclical decline. COVID-19 has only magnified the pressures on the company, and the ADRs are down