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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