$Linde(LIN.US) dropped nearly 6 points, but Q2 revenue of $9.289 billion beat expectations, with earnings per share at $4.15. It was immediately followed by an announcement of a $1.8 billion investment to support semiconductor customers in expanding production.
The fundamentals are solid and orders are moving forward, yet the stock chose this day to give back gains. The long-term contract model for industrial gases means revenue is unlikely to have surprises; the premium the market is willing to pay relies on stability. With $1.8 billion in capital expenditure being deployed, will this valuation anchor of stability loosen first?
For those holding, should they add positions based on the better-than-expected earnings, or wait until the return rhythm of the capital expenditure becomes clear? 🤔
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