Every year Brady Corp (BRC) stock price falls in the first quarter only to recover within the next six months. This is one of the best managed companies in the US. At the current price level it is an even better value than it was when I purchased stock in this company in the first quarter of last year. Over the past year the P/E contracted, as the company steadily grew revenue, profits and shareholder equity. Current drop in the stock price is temporary and a good opportunity to get in on BRC.

Pentair Inc (PNR) Pentair Inc is a diversified industrial manufacturing company with two operating segments: Water and Technical Products. As clean water is getting more scarce and is being recognized as an underappreciated commodity, stocks of companies involved in all aspects of clean water (treatment, storage, conservation, desalination and resource development) are getting more attention. One of the strongest and oldest companies represented in the Palisades Water Index and the PowerShares Water Resource (PHO) that tracks it is Pentair. The index has fallen 10% since the beginning of this year and PNR, which accounts for approximately 4% of it, is down 15%. This is a good opportunity to buy into a solid company in a great industry.