Wednesday, March 1, 2017

Policy Jitters Creating An Opportunity With Techtronic

Although I don't write on it often, Hong Kong's Techtronic (OTCPK:TTNDY) is a company that I've enjoyed following for a long time. The company behind well-known brands like Ryobi and Milwaukee are tools and Hoover and Dirt Devil in floor care, Techtronic has done a good job over the years of growing revenue and improving margins and ROIC (its performance on free cash flow has been less impressive). What's more, there's still room for the company to gain share in established markets like the U.S., add to its assortment of product offerings, expand into other markets, and drive more operating efficiencies.

The "but" is that investors have been frustrated lately by slower progress on margin improvements and worried about the potential ramifications of the new administration in Washington, D.C. As I don't believe Techtronic has outsized vulnerability to potential trade restrictions, and does have options for dealing with them, I think this could be an opportunity.

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Policy Jitters Creating An Opportunity With Techtronic

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