Machine tool manufacturer Hurco (HURC)
has now logged two consecutive quarters with revenues above my
expectations, and order flows appear to be improving. Combine that with
improving orders reported by German and American machine tool
associations and ongoing optimism regarding Europe and North America
from Japan's machine tool association, as well as nascent signs of an
industrial recovery Hurco's key European market, and maybe a little
optimism is not out of place.
Investors considering Hurco as a way
to play improving manufacturing conditions in Europe and North America
should keep a few things in mind. This is an very illiquid stock and it
is effectively unfollowed on Wall Street. It is also important to
remember that machine tools are both deeply cyclical and erratically so -
this recovery could disappear pretty quickly if issues like the dispute
between Ukraine and Russia linger or worsen. It remains a significantly
undervalued stock, though, and one that I believe is worth a closer
look for investors who can bear the risks.
Continue here:
Hurco May Be Seeing The Turn
No comments:
Post a Comment