Magnetek (MAG) shares still offer big-time upside potential. There are many things I like about the stock, several of which include:
- Industry leader that continues to grow its market share: MAG benefits from both secular and cyclical macro trends and is well positioned in growing end markets.
- Cash flow machine with adjusted free cash flow margins breaching 15% and approaching 20%.
- Levered equity returns as interest rates revert to historic norms.
- Buyout offer from private equity player rejected at $15/share offer price (representative of ~7% in premium at the time).
I profiled the company back in May when shares were trading in the $14.50 area, and they are up 21% since. I believe the stock is...