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I have owned Dover stock for 8 years now. It has had its ups and downs and has sold more capital intensive for the specialized "must have" industrial parts type companies. In a way, they are able to be further "diversified" in their product offerings and like Buffett, invest in their portfolio of companies that sell products indespensible for other companies abilitities to manufacture, as well as make products for necessary human consumption. Hence, I would assume this is why the stock price has gone up quite a bit lately into the middle '30's over the past several weeks, while the rest of the industrial and other sectors behave somewhat jittery. I would not recommend purchasing additional shares because I think Dover could be reaching (plateauing) up to the middle to high thirties for a while, and it might be optimistic to expect it to reach up to the fifties price range by 2010. I don't think that Dover can attribute its recent improved stock value to the ludicrous terminology called Dover Metrics that has been bandied about by 25 board writers in the message column. They are engineers and company managers who work on developing and selling each of Dover's companies products and are most concerned with being the leader of their niche' a criterion for admission to the coveted Dover 40 group. One thought I agree with about the authors of DM school of economic philosophy is that while Dover reminds me a bit of Berkshire Hathaway, they are yes, indeed, not directed by as top flight company presidents and CFO's, generally speaking. However, this might be very well true of most corporations. Buffett only buys businesses he knows are the best managed and led, etc. Dover must be more concerned with what the companies they buy make and their profitability, in addition to the personalities and abilities of their management. Aside from that, I like the suggestion that Dover ought to relocate out of New York. Their business model is not really enhanced by trying to be so close to Wall Street. For one, they have had no scandals like most WS companies and banks, and being of a manufacturing nature, Dover's headquarters probably ought to go to a more industrial type state and metropolitan area like Indianapolis, Omaha, Chicago or St. Louis. It is a unique company in that they operate on the acquisition approach instead of being set up as company divisions of the same type of manufacturing process like Waste Management does garbage collection and disposal, and Caterpillar builds bulldozers, trucks and engines. This is why "Dover Diversified" is able to reach higher share values in the face of a downturn like we are now in these days: after all, if one or more of its companies are not faring well, they have many more that are, and so it can make grand comebacks when the overall economy gradually becomes stronger again. I look for Dover to eventually reach the middle 50's range and if our anticipated recover of the next 5 - 6 years becomes a reality, maybe we can see a doubling in its profits and stock prices. I further note that Dover is a much better known company than in previous years and that this is reflected in the far greater volume of daily investment activity.
Sentiment : Buy Rating :
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Recent Stock Performance for Dover is Encouraging
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micromart50 |
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6-Jun-09 02:49 am |
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