It hasn't been a universally great time for companies dependent on the infant and juvenile products market. Mattel (MAT) has done pretty well, and Summer Infant (SUMR) is still up by double-digits, but companies like Dorel and Kid Brands (KID)
have found this to be a more challenging environment as a low birth
rate and a shift from many major retailers towards their own private
label brands have impacted sales.
Crown Crafts (CRWS),
though, has enjoyed a good run this year. Up more than 35% over the
past year, the company has recently gotten a sales growth boost from new
product launches, while a change in product mix has boost operating
margins nicely. While the small float, low volume, and minimal sell-side
coverage all mean that investors may have to exercise some patience in
waiting for this idea to develop, the model and valuation look
compelling today.
Continue here:
Barely Followed, Crown Crafts Worth A Closer Look
No comments:
Post a Comment