IPO Watch: Colfax Corporation

www.colfaxcorp.com
(NYSE:CFX)
Scheduled for the week of May 5
$300.8 million estimated proceeds
$659.7 million estimated post-money valuation

Many investors favor boring industries over whatever is the sexy, go-go sector at the moment. They’ll trade scintillating cocktail-party conversation for predictable returns in an industry that is easy to understand, which makes it easy to track a company’s progress. If you’re one of these folks who prefers mundane to modern, then Colfax Corporation — a manufacturer of pumps for industrial applications — might be for you.

Colfax specializes in big pumps for big uses, such as in oil wells, ships and chemical manufacturing facilities. Many of its customers, including the U.S. Department of Defense, aren’t affected by economic cycles. Other customers are economically sensitive, and right now, the global economy is in their favor. Colfax does two-thirds of its business outside of the United States, and demand for pumps is growing. India and China are building infrastructure, and just about every nation is demanding more oil and gas. Although pumps seem basic, they are critical to the operations that they are used in. That gives the company some pricing power, and it has an opportunity to grow revenues in the future by designing pumps that are more powerful . . .

---You can read the FULL article when you register (registration is free!) or sign-in to SmallCapInvestor.com---