Wall Street is full of perverse incentives; one of them is that you sometimes find yourself rooting against a company you otherwise like. I would be more than happy to own shares of growing food service equipment supplier Middleby (Nasdaq:MIDD), as I believe the company is taking share with innovative products and has a lot of growth opportunities, as its customers go international. However, I also don't ever like to pay too much for a stock, so it seems that I have to wish for some bad news, to create a bargain opportunity in this name.
An OK Third Quarter
Middleby did OK in the third quarter, but this stock is not typically priced to reward OK. Revenue rose 23% as reported, and acquisitions were once again a major component of the company's growth. Absent those deals, organic growth was more on the order of 6%. On a business segment basis, commercial food service did it all as revenue rose over 10% and offset the nearly 26% decline in food processing.
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