high roe, rel strength

Among the companies making the cut on these bases was construction-material maker Carlisle Companies (CSL), where he put 1.1% of Amana's money in April at an average price of $30. Carlisle has become the dominant supplier of so-called "green" roofs, which help reduce the energy needs of large retail and industrial operations. Growing demand for such improvements in both new construction and retrofits is propelling secular earnings growth of 18.3% a year. At the time Amana acquired the shares, the trailing P/E was about 11, and earnings per share had jumped 50% over the previous two years. Kaiser moved into the stock when shares pulled back on disappointing first-quarter results. The decline was attributed to write-offs associated with the pending sale of a division, which he considered a one-off event. By early June, the stock was trading at nearly $32.

growth

stability

It is a diversified manufacturing company, has increased its dividend 31 years in a row. According to my calculations this company should be at approximately $60/share. Company's growth calculation is also in guideline with my estimations of 10%.

BUY

Historic earnings growth.

From Barron's 6-18-07:

Outperform - Price 43.30 on June 11
by R.W. Baird
Announced departure of current CEO, [which] while surprising, was part of orderly internal transition process...CSL maintains relatively stronger pricing power than other diversified industrials (particularly in roofing). Pricing actions have essentially offset higher materials costs. Management goal of 10% operating margin in primary businesses appears achievable...Despite ongoing capital-expansion initiatives, we expect FCF [free cash flow] to expand in '07, providing support for increased acquisition activity and/or financial de-leveraging. A new tire-and wheel facility in China should bring $60 million of outsourced product back in-house, [and] 50 new tire [types] are in development at that plant, which should benefit '08 sales...Our 53 target is based on a 15 times multiple applied to our 2008 EPS estimate, the average forward P/E [price/earnings ratio] accorded the shares since 1995.

#3
IQ=98, Div=split & .1-.2 occasionally, Stk Pr % chg=26%, beta=.60

Downgraded by KeyBanc/McDonald from Aggressive Buy to Buy

stock price performance; US construction market dependant