Jagro

I listened to the webcasts and had a quick look at the accounts and was equally impressed.

Had a quick glance at Halma on Hemscott. On the face of it, 5-yr headline performance didn't seem comparable to that of AME. I will have a closer look however at that and the others you mention. I think St. G already owns Weir.

Your valuation comments are particularly noteworthy for investors intending to buy and hold any stock on a current p/e at the top end of this board's prescribed range. The effect of a de-rating from 20 to 15, whether sudden or gradual, would be debilitating.

I own several shares on p/e's in the lower 20s, watch them all like a hawk, and don't class any as long term holds. If, as is quite likely, I buy AME, it would be treated as part of this bunch. I'd be a lot more relaxed about it if resident in the US.

I have never got round to learning about DCFs, so could only take your figures at face value. You come to a similar conclusion from both methods. Presumably this is not always the case, perhaps most likely when a company's cash flow characteristics differ persistantly from its earnings.

DoY