Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Can Labelmaker Multi-Color Make The Leverage Stick?

Multi-Color (NASDAQ:LABL) is the sort of obscure small-cap company that I love; the company's products are ubiquitous and essential (product labels), but nobody really ever thinks about them. What's more, Multi-Color is a good play not only on the overall volume growth of consumer goods, but also on the increasing sophistication of labels and the very fragmented nature of the industry. While Multi-Color is not a very liquid or well-covered stock, I believe patient investors will be impressed with what this company becomes over the next three, five, or 10 years.

Growth Has Perked Up, But Margins Are Proving Tricky

When Multi-Color reported its last quarterly results (in November), sales shot up 66% largely on the back of...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details