It's been a decade to forget for many machine tool
companies, as the 2008 recession hit many of them hard and the more
recent weakness in natural resources and heavy machinery has knocked
them back yet again. Hardinge (NASDAQ:HDNG),
a small U.S. player in the space, has certainly seen better days, as
the shares are about one-quarter lower than they were a decade ago on
lower sales and weaker margins.
Why bother paying
any attention to Hardinge? This is a small (less than $150 million in
market cap and enterprise value) pure-play on the industrial economy and
if/when manufacturing activity recovers, sales, margins, cash flows,
and valuation multiples should all improve, and potentially quite
significantly. While the shares have participated in the widespread
post-election run, I believe relatively modest financial performance
would be enough to lift these shares into the mid-teens.
Read the full article here:
Hardinge Offers Meaningful Leverage To An Industrial Recovery
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