Preformed Line Products (NASDAQ:PLPC) is pretty far off the beaten path for most investors, as it has no coverage on the Street, a market cap of just under $300 million, and very modest daily liquidity. Yet, it is a leader in multiple "nuts and bolts" segments of the utility and telecom infrastructure industry, and particularly in areas like formed wire products and protective closures that help protect power lines and fiber optic cables.
Make no mistake - PLPC is hard to follow and hard to benchmark, and investors may be rightly concerned about the significant day-to-day roles still played by the Ruhlman family. That said, this is a company that has generated double-digit ROICs in better times and one that has still at least managed to maintain profitability during a challenging time for the industry. If utility, transmission, and distribution companies do ultimately reinvest in and grow their grids as many observers and research groups project they must, this stock could still do well in the coming years.
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Preformed Line Products Poised To Benefit From Grid Spending