Kennametal Is Dirt-Cheap
I like bargains, and fundamentals say Kennametal (KMT) is now at an extremely cheap valuation. On Monday, shares of the company -- a global materials, tooling and component manufacturer -- closed at $33.92, lower than the June 2007 price. Kennametal's five-year road has been bumpy due to the recession in 2008 to 2009, but over the full stretch -- fiscal 2007 to 2012 -- its dividend rose by 36.6% and earnings per share grew by 69.9%.
These high-beta shares have given traders numerous chances to buy and sell for nice gains -- and the abrupt pullback since the March 2012 peak of $47.82 appears to be offer good chance to get in again. Foreign sales account for about 57% of Kennametal's total, so the temporarily strong dollar and weak European situation may be responsible for the drop....211 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.