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

Should Investors Go With The Flow?

If you follow the earnings reports of machine tool companies like Hurco (NASDAQ:HURC), Hardinge (NASDAQ:HDNG), and Gildemeister, these are not happy-fun-times in the machine tool industry, though there seems to be a big difference between companies that address high-volume and low-volume markets (the smaller the target company, the worse things appear to be). Likewise, companies with big exposure to metal-cutting, including Kennametal (NYSE:KMT), Atlas Copco (OTCPK:ATLKY), and MSC Industrial (NYSE:MSM), have been reporting pretty challenging market conditions in North America and Europe.

As Flow International (NASDAQ:FLOW-OLD) sells metal-cutting machine tools, you can probably guess where this is going. While Flow is a leader in waterjet cutting equipment,...

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