Powering Through Headwinds

IF POLITICAL GURU JAMES CARVILLE were to turn his attention to the current investment climate, he'd probably exclaim, "It's the balance sheet, stupid." Then he might take a look at Kaydon (ticker: KDN).

The maker of specialized bearings for industrial applications faces a challenging market, for sure, but Kaydon's balance sheet makes it a compelling stock in today's uncertain environment.

Longer term, the company should benefit from its critical role in renewable energy. Kaydon is the dominant maker of large-diameter bearings required for the smooth operation of wind turbines.

Kaydon's bearings, or "friction-control products," accounted for nearly 60% of 2007 ...