Colfax Corporation niche industry of manufacturing fluid handling products for commercial marine, oil, and gas, global Nay and power Generation industries has allowed itself to dominate this market it is in.

This is clearly obvious by the growth in EPS and sales. The past six quarters EPS took off growing over 999% the past five quarters before growing a more manageable 43%. The sales were going off as well, with growth coming in at 14%, 14%, 14%, 17%, 33%, 33% the past eight quarters. The sales growth is incredible but the earnings growth rate of 127% which helps put the stock within the top 1% of stocks based on earnings stability, despite debt being 384% of the shareholder equity. And who can really care about a 384% debt when you return on equity is THE BEST IN THE BUSINESS WITH A 220% rating, seriously.

Not only are they nuts bout the earnings growth its is also about the mutual shows. Management stll owns 44% of the shares outstanding which indicates to me that they clearly want to have a vested interest in this company’s future growth. Sadly I do not have the data on the mutual funds as they are not yet reported in IBD’s Daily Graphs.

The other great news for you P/E guys is that the company’s p/e ratio is a low 16 which is at the high end of the 12-26 range. Sill, however, as long as it is under 20 it is cheap.

Confirming the strength of CFX is the ratings in Investors Business Daily which give CFX a 97 EPS rating, a 91 ReativeStrength rating, an SMR rating of an A, an Acc/Dis rating of an N/A, a composite rating of 96, a timeliness rating of C, and since there is no mutual fund info there is no sponsorship rating. Still the overall letters and numbers are excellent and confirm the strength of this stock.

Even though fundamentals drive my purchases, the technical tell me when to get in and when to get out. If I can get a low volume pullback to the 50 DMA I would love to etxtremely long again. However, if it doesn’t touch the 200 DMA, I believe the stock will continue to rally and I will just tek the next breakout. However, it the stock dumps and now if the stock does breakdown though the 50 DMA and 200 DMA on very strong volume, Iwill more-than-likely kill the trade as the 80% of the reason for my trades is fundamentals but the chart represents the other 30% and tells me if it is safe and time to

At the time of publication, Joshua was long Colfax Corp (CFX)

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