SPX Corporation (NYSE: SPW) is one of the most boring moneymakers in the world: engineering and manufacturing pumps, filters, you get the drift. You will never hear anyone at a party talking about how hot this one is, but it will make a lot of money in the next few years.
Between now and 2015 it is expected to grow its earnings by 22%, and next year’s margins are expected to increase by 11.3%. At just the current market P/E – which, if things continue the way they have been running, will seem cheap – this is a $140 stock in 2015. It is currently at about $96.
It has $265 million in free cash flow that will be used only to reduce debt and buy back stock, and it sports an 18%-a-year growth factor for the next five years.
SPX has it all and it is the real deal. Take a look at SPX.
GE: Saving Lives and Making a Bundle
General Electric (NYSE: GE) has had a very hard fall from grace since the glory days of Jack Welch, but never count this behemoth out of the action.
Its shares fell as low as $6 from a peak of $60 and are currently at about $25. Investors are betting on the 2.3-year backlog of orders in the transportation and aviation divisions, and strong numbers from its oil and gas division.
But if I had to bet the farm on one thing it is doing, it would be in its medical division.
It’s developing something called wireless medical monitoring that could revolutionize medicine. I know that term is thrown around a lot, but consider this. A person with a heart condition that is monitored by one of its wireless devices has a 43% survival rate as compared to a 6% rate if they don’t have one.
This is amazing stuff and life-changing. Don’t wait for all the good news to be out before you look at this one.
Poland Is on a Tear
This one is particularly close to my heart. I grew up in a coal mining town that was 99.9% Polish. I was one of the few kids whose name didn’t end in s-k-i. And this news is the biggest thing for Poland since the Polish pope.
Of all of the EU countries, Poland is the one giving off signs of being the fastest growing and the most secure growth.
Even during the EU crisis, this country had 1.6% GDP growth and did not participate in the heavy borrowing that went on at that time.
In fact its debt-to-GDP ratio is only 55% and its inflation rate is 3.8%.
We wish we had those numbers.
And Poland is the home of the biggest coking coal mining operation in the EU and is an exporter of it.
There is a lot to be excited about in Poland and you should be looking at this one.
The “Slap in the Face” Award: Driving Us to Drink
This week’s “Slap in the Face” award is a quickie, too. The chart on your screen says it all.
This chart maps the Fed’s money printing over the past four years or so and the increase in the sale of wine, beer and liquor.
The correlation between the increase in booze sales and how much phony cash the Fed’s trying to pump onto the street is .92, which roughly translates into a 92% chance that the Fed really is driving us all to drink.
If this keeps up none of us will know when the money printing bubble blows. Maybe that’s the plan?
View original at: Investment U
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