Value Stock Ideas

3 more stock ideas for you to consider following the previous value stocks I presented earlier.

Lincoln Electric Holdings (NasdaqGS: ), Miller Industries Inc. (NYSE: ) and Simpson Manufacturing Co., Inc. (NYSE: ). I felt these companies would be pretty good picks if they drop down to my desired margin of safety but until then, they will have to be monitored occasionally. I immediately liked LECO and upon some further number crunching, it looks to be a good one to add to my watchlist.

Lincoln Electric Holdings (NasdaqGS: LECO)

Lincoln Electric is a full-line manufacturer and reseller of welding and cutting products. Welding products include welding power sources, wire feeding systems, robotic welding packages, fume extraction equipment, consumable electrodes and fluxes. The Company’s welding product offering also includes regulators and torches used in oxy-fuel welding and cutting.

Current Price: $44.80

DCF Valuation: $41.79 - $55.51 (after adjustments to FCF)

Graham Formula: $42.06

Competitor Comparison: Current PE is a higher than the industry and most of its competitors. Adjusting gives a fair value of $32.58

Comments: The consistency of performance and FCF immediately stood out for LECO. The company has some great fundamentals.

• has been FCF positive for the past 10 years
• has been FCF positive every quarter for the past 20 quarters except Q1 of 2009
• very healthy balance sheet
• consistent inventory turnover
• consistent margins even in recession
• consistent CROIC of 14.4%
• converts 7c of sales into FCF.