In the slow-growing label business, operating scale and efficiency is the name of the game and Multi-Color (LABL)
showed some encouraging progress in that regard in the company's fiscal
second quarter. I've written multiple times on this under-followed
small-cap (here, here, and here),
and the stock is up a solid 74% over the past year. Although I do
believe there is significant room for Multi-Color and rival CCL Industries (CCDBF)
to further consolidate the industry and drive better operating margins,
expectations have definitely changed. I'm not in a rush to sell today,
and I can see a path to a fair value in the low $40s, but this is
definitely a situation where I'm starting to think about using
protective stops or option-writing strategies to protect my gains.
Follow this link to the full article:
Multi-Color Showing Hints Of Stronger Operating Leverage
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