Credit where due - not only has Colfax (CFX) management reduced the cyclicality of the business in a relatively short time, it has also added a credible acyclical healthcare platform and improved the execution of its ESAB welding business. That progress has translated into strong outperformance, with the shares up almost 40% since my last update and leaving Colfax as one of the best-performing industrial/multi-industrial stocks of 2019.
With the move, the undervaluation I saw back in May has been corrected. From here on, the story is about ongoing execution in the Med