Monday, January 13, 2014

Seeking Alpha: Challenging Markets Still Weighing On Hurco

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

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