Although I don't write about it often, Techtronic (OTCPK:TTNDY) has long been one of my favorite companies. The company behind brands like Milwaukee, Ryobi, and Hoover, Techtronic has shown itself to be more than just a low-cost manufacturer of power tools, as a strong product development effort has driven share gains in both the consumer/DIY market and the professional market, with the latter helping to drive strong, steady gross margin growth over the past decade-plus.
There are a lot of strong positive drivers still in place. I don't believe the company is close to exhausting its opportunities to take a share in the residential or commercial markets, and Europe is still largely an untapped market. Diversifying the manufacturing base should offer some improved long-term margin security, and newer categories like outdoor powered equipment still offer significant upside.
Unfortunately, that seems to all be in the price, particularly since the shares have rocketed higher over the past six months (up almost 115%). While I still love Techtronic from an operational perspective, I just can't get where I need to be on valuation to pound the table.
Follow this link to the full article:
Strong New Product And New Market Development Have Driven Techtronic
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