Saturday, August 23, 2014

Seeking Alpha: Mocon Has An Interesting Energy Angle, But Watch The Margins

Micro-cap measurement and analytical tools company Mocon (NASDAQ:MOCO) hasn't done all that well since I wrote about the company in January of this year. It's always hard to know what moves trading on illiquid stocks that are not followed by analysts (seriously, no sell-side analyst follows Mocon), but relative to my own model the company has been disappointing with respect to sales growth, gross margin, and operating margin.

I'm still bullish on this company. The company has been communicating more clearly about its opportunities in energy and other "industrial" markets like water and air quality, and food contamination issues have stayed in the news. It takes patience and a larger appetite for risk to hold stocks like Mocon, but between its standalone prospects and potential appeal to an acquirer I think this is still a company worth a reader's time and due diligence.

Read more here:
Mocon Has An Interesting Energy Angle, But Watch The Margins

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