Tuesday, January 12, 2016

Seeking Alpha: Hurco's Tiny Boat Facing Choppy Seas

I don't envy the job facing Hurco's (NASDAQ:HURC) managers today. I believe that this small industrial company remains a very overlooked manufacturer of high quality high-spec machine tools, but that is a very tough business to be in these days. As I've written in past pieces on companies like MSC Industrial (NYSE:MSM), demand for cutting and metalworking tools has plunged in the U.S. during this industrial slowdown and demand appears to be even worse in Asia.

I still believe that patience will pay with the stock. The company has released an interesting new control console (Max 5) and the acquisition of Milltronics and Takumi meaningfully expands both the company's product lines and geographic exposures. A machine tool company is a quintessentially cyclical company, but Hurco does look undervalued to me today.

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Hurco's Tiny Boat Facing Choppy Seas

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