FMC Technologies (NYSE symbol FTI) is undervalued, selling at 55% discount of fair market value. Using Warren Buffett's approach, on Friday I paid 45 cents on the dollar for FTI. My purchase price was $58.45 and the estimated fair market value is $130.84. Now that's a real bargain!

Here's what attracted me to FTI (all five-year annual growth rates): bookvalue 25.8%, earnings per share 40.8%, revenue 16.0%, return on invested capital 13.0%, and free cashflow 23.2%. The analysts' consensus earnings annual growth estimate for the next five years is 31%.

What's not to like about this? Great financial results over the past five years and solild future predictions. And so I jumped at it.

Now let's see if I am right.

About FMC Technologies: FMC Technologies is a global provider of technology solutions for the energy industry and other industrial markets. The Company designs, manufactures and services systems and products, such as subsea production and processing systems, surface wellhead production systems, high-pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. It also produces food processing equipment for the food industry and specialized equipment to service the aviation industry.

Pierre Cutler
The Sacramento Executive