Friday, March 7, 2014

Seeking Alpha: Miller Industries Quietly Executing

I cannot say that I'm thrilled with how Miller Industries (MLR) has performed since I wrote about it as a Top Idea in September of 2013. The shares are slightly ahead of the market since then, and the comp group has ranged from the outperforming Oshkosh (OSK) to the underperforming Spartan Motors (SPAR), but I was hoping for better performance as the company's sales improved. By the same token, this company is totally ignored by the sell-side and isn't very liquid, so it is the type of stock where investors need to have patience in the long-term story.

Looking to the rest of 2014, I continue to like Miller as a play on recovering demand for capital equipment in the towing sector. International markets remain a long-term growth opportunity and the company should see some margin benefits from better operating leverage. As I believe the shares are about 30% below fair value, I still see this as a quality small-cap GARP idea.

Continue reading here:
Miller Industries Quietly Executing

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