I continue to believe MOCON (NASDAQ:MOCO)
is an interesting, albeit very small and illiquid, play on the growth
of the food and beverage industry with a kicker from newer ventures like
energy and environmental testing. As a large amount of the company's
revenue comes from Europe, this could be a more challenging year due to
currency headwinds and the meltdown of the oil/gas sector is not going
to help the company's efforts to grow its well logging business. Even
so, I believe those challenges don't derail the long-term story.
It's
worth saying again that this is very much a below-the-radar stock. The
daily volume may be challenging for individual investors and is
virtually a no-go for institutions. Likewise with the sell-side -
there's no real money to be made making a market in these shares, so
there's no coverage today and no reason to expect any in the near
future. Even so, I believe the shares ought to trade in the low $20's on
the basis of low-to-mid teens growth over the next five years and
mid-to-high single-digit long-term growth.
Read the full article here:
MOCON Has Some Headwinds For 2015, But A Good Underlying Business
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