DRC

Dresser-Rand Group Inc.

Industrial/Transportation


Presented:12/12/2013
Price:$57.19
Cap:$4.36B
Current Price:$85.18
Cap:$6.55B

Presented

Date12/12/2013
Price$57.19
Market Cap$4.36B
Ent Value$5.53B
P/E Ratio57.6x
Book Value$16.96
Div YieldN/A
Shares O/S76.29M
Ave Daily Vol790,000
Short Int3.80%

Current

Price$85.18
Market Cap$6.55B
Dresser-Rand Group Inc., together with its subsidiaries, engages in the design, manufacture, sale, and service of engineered rotating equipment solutions to the oil, gas, chemical, petrochemical, process, power generation, military, and other industries worldwide. It operates in two segments: New Units, and Aftermarket Parts and Services. The New Units segment offers engineered turbo and reciprocating compression equipment and steam turbines; power turbines; special-purpose gas turbines; hot gas expanders; gas and diesel engines; trip, trip throttle, and non-return valves; and magnetic bearings and control systems. This segment also provides engineering, manufacturing, packaging, testing, sales, and administrative support services. The Aftermarket Parts and Services segment offers a range of aftermarket parts and services, including replacement parts, field service turnaround, service and repair, operation and maintenance contracts, rotor/spare parts storage, condition monitoring, controls retrofit, site/reliability audits, remote area energy solutions, equipment repair and rerates, equipment installation, applied technology, long-term service agreements, special coatings/weldings, product training, turnkey installation/project management, and energy asset management services. The company markets its products and services through its sales representatives comprising direct sales/service personnel, and a network of independent representatives and distributors. Dresser-Rand Group Inc. was founded in 2004 and is headquartered in Houston, Texas.

Highlights

After two consecutive quarters of disappointing earnings results, shares of DRC are already down more than 12% off their July highs. But with management guidance implying a hockey stick ramp in various key metrics in Q4, the presenter sees room for meaningfully lower downside from here for the compressor/ rotating equipment maker. Considered by the presenter to be a generally solid company, his current bearish view is being expressed and recommended as a trade and not an investment.

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