TELEFLEX: A STRONG FOUNDATION

STOCK OF THE WEEK :


Cheap stocks come in all shapes, sizes and industries. This fact makes building a diversified portfolio a joy. It is almost like a good Easter Egg Hunt; some of the best finds take a little more effort but they can be the most rewarding. Investors are hiding from any firm that has anything to do with auto production. Smart investors buy what other investors do not want.

Teleflex Incorporated, Located in Limerick, PA., has designed and manufactured specialty engineered products for more than 60 years. As a leading global supplier to the automotive, marine, industrial, medical and aerospace markets, they are experts in the markets they serve and dedicated to customer service. Teleflex strives to design real-world solutions with products that are practical, cost-effective and reliable. Today, they have revenues exceeding $2 billion, operate in 27 countries, have more than 19,000 employees, and more than 800 patents. Truly a global corporation, Teleflex derives over 40 percent of its revenues from exports and has numerous manufacturing, repair and service facilities in Europe and Asia. Teleflex has a very active international growth program.

Teleflex’s common stock is listed on the NYSE under the symbol TFX The company has increased its cash dividend every year since it began paying dividends in 1977. Jeffrey P. Black, President and CEO of Teleflex recently announced that a cash dividend of ($0.22) per share of common stock would be paid this year. The company offers both a Dividend Reinvestment & Direct Stock Purchase and Sale Plan.

The company is made up of three very different business segments:

Teleflex Aerospace supports commercial and military aircraft, and industrial gas and steam turbines with: comprehensive engineering solutions, in-house design and manufacturing, cargo-handling systems, round-the-clock AOG repairs and spares support.

Teleflex Medical supports health providers along the continuum of care in three main areas: devices for urology, anesthesiology, gastroenterology and respiratory care, surgical instruments and related services and original equipment manufacturers.

Teleflex Commercial business segment consists of three (3) divisions: Teleflex Automotive supplies passenger cars and light trucks with: gearshift mechanisms and knobs, transmission guide controls, electronic throttle control pedals, pedal systems and control cables. Teleflex Industrial product group serves a variety of global industrial markets by designing and manufacturing: gearshift systems, engine and power management controls, light-duty cable systems, fluid handling systems, alternative fuel components and systems. Teleflex Marine cuts through the water as many recreational and commercial boaters depend on them for: mechanical and hydraulic steering systems, throttle and shift controls, marine electronics, engine and drive parts, and marine instrumentation.

The 2005 financial outlook for Teleflex Incorporated, as reported by their President and CEO, Jeffrey P. Black, "From our vantage point today, 2005 looks like it will be a strong year for the company. A focus on cash flow management should increase cash flow from operations by 20 to 25 percent year over year. Cost benefits from the restructuring and divestiture program, accretion from the Hudson Respiratory Care http://www.hudsonrci.com/ acquisition, and the positive impact of portfolio changes in 2004 should improve operating margins across all three business segments. The actions we have taken and our strong balance sheet will enable us to pursue strategic acquisitions in the years ahead." Black added, "In 2005, we will be focused on completing planned divestitures and continuing to execute our announced restructuring program while providing customers with a seamless transition. Fluctuating foreign currency markets, increased corporate costs, and increased tax rates could present some near-term challenges. However, on balance we believe that the benefits of the restructuring program and continued solid core growth will create earnings growth in 2005 and provide a strong foundation for profitable growth in 2006 and beyond."

On Wednesday, May 25th the stock closed at $55.03. Their 52 week high was $56.50 on 5/19/05 and 52 week low was $40.37 on 9/23/04. I thought it was interesting that their stock has split 6 times in the last 27 years. In fact 4 of the 6 times it split in the month of June.

First quarter revenue increased 8% or $626.0 million, compared to $579.7 million for the same period last year. Strong 1st quarter, stock price stock price, restructing well underway and a promising aquisition in the works--what is not to like?

TELEFLEX: A STRONG FOUNDATION

STOCK OF THE WEEK :


Cheap stocks come in all shapes, sizes and industries. This fact makes building a diversified portfolio a joy. It is almost like a good Easter Egg Hunt; some of the best finds take a little more effort but they can be the most rewarding. Investors are hiding from any firm that has anything to do with auto production. Smart investors buy what other investors do not want.

Teleflex Incorporated, Located in Limerick, PA., has designed and manufactured specialty engineered products for more than 60 years. As a leading global supplier to the automotive, marine, industrial, medical and aerospace markets, they are experts in the markets they serve and dedicated to customer service. Teleflex strives to design real-world solutions with products that are practical, cost-effective and reliable. Today, they have revenues exceeding $2 billion, operate in 27 countries, have more than 19,000 employees, and more than 800 patents. Truly a global corporation, Teleflex derives over 40 percent of its revenues from exports and has numerous manufacturing, repair and service facilities in Europe and Asia. Teleflex has a very active international growth program.

Teleflex’s common stock is listed on the NYSE under the symbol TFX The company has increased its cash dividend every year since it began paying dividends in 1977. Jeffrey P. Black, President and CEO of Teleflex recently announced that a cash dividend of ($0.22) per share of common stock would be paid this year. The company offers both a Dividend Reinvestment & Direct Stock Purchase and Sale Plan.

The company is made up of three very different business segments:

Teleflex Aerospace supports commercial and military aircraft, and industrial gas and steam turbines with: comprehensive engineering solutions, in-house design and manufacturing, cargo-handling systems, round-the-clock AOG repairs and spares support.

Teleflex Medical supports health providers along the continuum of care in three main areas: devices for urology, anesthesiology, gastroenterology and respiratory care, surgical instruments and related services and original equipment manufacturers.

Teleflex Commercial business segment consists of three (3) divisions: Teleflex Automotive supplies passenger cars and light trucks with: gearshift mechanisms and knobs, transmission guide controls, electronic throttle control pedals, pedal systems and control cables. Teleflex Industrial product group serves a variety of global industrial markets by designing and manufacturing: gearshift systems, engine and power management controls, light-duty cable systems, fluid handling systems, alternative fuel components and systems. Teleflex Marine cuts through the water as many recreational and commercial boaters depend on them for: mechanical and hydraulic steering systems, throttle and shift controls, marine electronics, engine and drive parts, and marine instrumentation.

The 2005 financial outlook for Teleflex Incorporated, as reported by their President and CEO, Jeffrey P. Black, "From our vantage point today, 2005 looks like it will be a strong year for the company. A focus on cash flow management should increase cash flow from operations by 20 to 25 percent year over year. Cost benefits from the restructuring and divestiture program, accretion from the Hudson Respiratory Care http://www.hudsonrci.com/ acquisition, and the positive impact of portfolio changes in 2004 should improve operating margins across all three business segments. The actions we have taken and our strong balance sheet will enable us to pursue strategic acquisitions in the years ahead." Black added, "In 2005, we will be focused on completing planned divestitures and continuing to execute our announced restructuring program while providing customers with a seamless transition. Fluctuating foreign currency markets, increased corporate costs, and increased tax rates could present some near-term challenges. However, on balance we believe that the benefits of the restructuring program and continued solid core growth will create earnings growth in 2005 and provide a strong foundation for profitable growth in 2006 and beyond."

On Wednesday, May 25th the stock closed at $55.03. Their 52 week high was $56.50 on 5/19/05 and 52 week low was $40.37 on 9/23/04. I thought it was interesting that their stock has split 6 times in the last 27 years. In fact 4 of the 6 times it split in the month of June.

First quarter revenue increased 8% or $626.0 million, compared to $579.7 million for the same period last year. Strong 1st quarter, stock price stock price, restructing well underway and a promising aquisition in the works--what is not to like?

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