Typically when a writer talks about a company being "under-followed"
it means that there are no analysts from big name firms following the
stock, or that what coverage there is from small retail-oriented shops.
In the case of Hurco (HURC), though, there is no coverage.
None.
While
this is indeed a small company with a very small float, it doesn't
deserve to be completely ignored. Hurco is a small player in the global
machine tool industry, but its high-spec tools address a legitimate
market opportunity. What's more, the company's margins and returns on
capital stack up quite well against some of the giants of the sector.
While there is a frustrating cyclicality to this industry, Hurco shares
look 30% to 50% undervalued on the basis of a long-term free cash flow
model.
Please read more here:
Hurco Virtually Unknown And Meaningfully Undervalued
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