Monday, December 2, 2013

Seeking Alpha: Barely Followed, Crown Crafts Worth A Closer Look

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.

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Barely Followed, Crown Crafts Worth A Closer Look

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