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

Global Power Equipment Is Either A Big Value Or A Trap

By and large, investors do well for themselves if they assume that something that looks too cheap to be believed shouldn't be believed. Of course, carry that philosophy too far and you miss most of the really impressive turnarounds and long-term growth stories.

That brings me to Global Power Equipment (NYSE:GLPW). This company has been suffering lately from lower service demand and delayed orders, but nevertheless offers an intriguing mix of sustainable recurring revenue and leverage to natural gas-fired electricity generation expansion. A discounted cash flow suggests significant potential undervaluation, but investors would do well to remember that many power/utility-focused companies have ultimately disappointed relative to their long-range forecasts.

A Rare Combination In The Power Space

I suspect...

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