At some point investors are going to tire of waiting for a recovery at Hurco (HURC)
and they are going to move on to other names leveraged to industrial
markets in Europe and the U.S.. I'm not at that point yet. While I do
have concerns that Hurco is losing share to Asian rivals in both Europe
and North America, I believe the discrepancies still have more to do
with Hurco's focus on short-run systems and smaller customers.
The
machine tool market is highly cyclical and tied to global manufacturing
activity, but there is still scope for Hurco to gain share with its
product development and marketing efforts. These shares have basically
no coverage on the Street and the low volume suggests that is likely to
continue (covering Hurco isn't a particularly promising money-making
opportunity for a sell-side firm). Nevertheless, at a small premium to
tangible book and with a potential recovery in the company's key markets
in 2014, I believe these shares remain quite cheap.
Follow this link for the full article:
Challenging Markets Still Weighing On Hurco
No comments:
Post a Comment