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Buy Mail on Sunday http://www.thisismoney.co.uk/investing/share-tips-and-fund-tips/article.html?in_article_id=512630&in_page_id=23
http://www.investegate.co.uk/Article.aspx?id=200910160730028970A
Until recently however, followers of the company expected a much larger decline in 2009 profits. And next year, the company may well recover more quickly than anticipated, as Asian economies grow stronger and use more metals and other commodities. In September, Weir announced that Selway would be leaving at the end of the year. A native Australian, he has been offered a job Down Under and decided to go home. The impact of this has been deflected, fortunately, as finance director Keith Cochrane is stepping up to the plate. Cochrane has been with Weir since 2006 and has been instrumental in transforming the company from what it was to what it is today. Midas verdict: Weir shares are trading at 750p. They have done well in recent weeks but are still well below the high of 970p reached in the summer of 2008. The stock should rally as economic conditions improve and brokers become more appreciative of the company's spread of businesses. Buy.
Weir Epic: WEIR Share charts: http://www.thisismoney.co.uk/weir Weir does not just make the kit however. It also has a robust after-care, service and maintenance business. This is particularly important in industries which work their equipment hard, such as mining companies, and areas where safety is critical, such as nuclear power stations. Weir's after-care division has proved extremely helpful during the economic downturn, cushioning the group from the worst effects of recession. In the six months to 26 June, for example, orders for original equipment fell 36 per cent to £273 million but spare part orders were down just 2 per cent to £248 million, while demand for servicing rose 5 per cent to £136 million. Weir is far from complacent about the future but the company should be one of the early beneficiaries of economic recovery. Mining companies are already seeing demand for metal pick up, particularly inChina and other emerging markets. Oil and gas and power should follow. Initially, Weir's customers may not want to buy large amounts of new equipment but, as they use existing kit more, the need for spares and service will increase. The company will issue a trading update in mid-November and some brokers believe this will be more positive than expected. In 2008, Weir made pre-tax profits of £176 million. Most analysts expect a slight fall to £170 million this year, reflecting the economic slowdown, particularly in North A