Out Fox The $treet

KHD Humboldt Wedag (KHD) smashes the estimates for Q3 reporting $.25 compared to the $.05 estimate. Revenues were also much higher at $148M versus the $102M estimate. The markets in Russia, Eastern Europe, Asia, and Africa appear to be moving forward finally. KHD is up 17% today, but the market cap is only $350M after this jump and still less then the cash balance of $407M. KHD remains one of the cheapest emerging market plays right now. Anybody following us should already own this stock, but any price close to $11 is still very attractive. Keep an eye on the gap in the charts and load up if it gets closed. revenues of $148.2 million with a net income of $7.5 million, or $ 0.25 per share on a diluted basis, which included restructuring charges. This compares to revenues in the third quarter of 2008 of $193.6 million and net income for that period of $30.8 million, or $1.01 per share on a diluted basis. Our margins, excluding special charges, for the third quarter of 2009 were 17 percen...

Added more KHD Humboldt Wedag to our Growth Portfolio today when the stock plunged down to the 50ema. Can't find any news to explain the plunge so hopefully it's just a technical move and the stock will recover nicely.

Until this article at Realmoney.com , I'd never heard of KHD Humboldt Wedag (KHD). KHD owns companies that operate internationally in the industrial plant engineering and equipment supply industry, and specializes in the cement processing industries. They have a negative enterprise value meaning that cash in the bank outnumbers the market cap. This is a pretty rare situation especially considering they are basically a emerging markets play with 95% of their backlog in Russia, Eastern Europe, Asia (mainly India), and the Middle East. Back to why this stock made my radar. They fall into the same sector as Liz Claiborne (LIZ), Terex (TEX), and Manitowoc (MTC) that we've owned this year and still own LIZ and TEX. What sector is that you ask? They are all still down roughly 80% from their recent highs and were 'blistered' alot more then deserved. The author suggests stocks deserving to be down 20%, but that dropped 80%. We're not so sure about just 20%, but even 50% woul...

Just getting around to posting that Stone Fox bought KHD Humboldt Wedag (KHD) for the Growth Portfolio at $10.35 on 10/13. More to come on this play, but to summarize its a great value play in the Engineering & Construction segment with a huge focus on emerging markets like India. Sold the Natural Gas ETF (UNG) to make room for this trade. Not much positive to say about this ETF. Just read any of the stories on popular financial websites to see why this ETF has turned out to be a huge bust.