There's a good chance I'll have some investing money available in a month or so and I've been looking at a few companies. Hurco and Yamana Gold are the two that strike me as good opportunities right now.
As I've mentioned before, I find Hurco attractive because they are a leading business in their field (computerized machine tools) which should be seeing increased business over the next few years, especially internationally. Hurco also represents a relatively short-term hedge to U.S. inflation because a good portion of their sales are outside of the U.S., and a weaker U.S. dollar has meant higher sales in Asia and Europe. Another plus is that the company's Asian sales have been rapidly increasing and still represent less than 10% of overall sales. So the company has great opportunities worldwide to benefit from growing economies which are becoming more and more modernized.
The stock has been hit hard since last May because the market didn't like the company's 2Q results, but I don't see anything major that changes the company's long-term strength and potential. The balance sheet is very clean with nearly $30 million in cash with no debt. One thing that I don't like is that operating cash flow has been in the red the past two quarters; I will investigate this further because it certainly isn't a pleasant thing to see.
Anyway, just wanted to get an analysis going, I'll be doing more research as time allows and I will post when I find anything useful.
Tags:
asia, europe, evaluation, hurco, inflation, pencils fund, yamana gold
Posted at: 04:16 PM | Add Comment
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