1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Holly LaFon
Holly LaFon
Articles (5529) 

Baron Funds Comments on Cognex

August 23, 2012 | About:

From Baron Funds' second quarter commentary:

Shares of Cognex, Corp. (NASDAQ:CGNX), which sells machine vision systems for factory automation applications, declined 25.1% in the quarter. First quarter results showed some deceleration in the sales growth rate but most of the shortfall was related to one cyclical end market.The shares fell later in the quarter over concern about exposure to Europe. Cognex has $9 per share in cash (a third of its market capitalization) and net of that it has traded down to ten times our projection for earnings. We believe it is way too cheap. We think the stock could trade at twice that multiple since we believe its factory automation segment (which makes up three quarters of sales) can continue to grow organically at about 20% and expand margins, which is quite extraordinary.

Rating: 5.0/5 (1 vote)


Please leave your comment:

GuruFocus Mobile App

User Generated Screeners

doniemaherScreen #15 - Divs Growth
ryanhinchmanUS Value
allenmcgaugheyPredictable DCF
activemikeValue Filter
tim.hartlandHIgh ROCE, 5 yr Low, strong cu
ymoscomos 7

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)