Admiral Nemo
Value, debt, growth at reasonable price, bonds

National Presto: A Fair Valued Solid Company With Near Term Uncertainty

Introduction

National Presto Industries (NYSE:NPK) is a small cap conglomerate which routinely pays a high dividend. NPK has three distinguishable business segments: the housewares segment which makes small kitchen appliances under its Presto brand; the defense segment which manufactures ammunition mainly for the US Army; and the absorbent products business which makes private label adult incontinence products. Facing headwinds from defense budget cuts and the loss of a major customer in its absorbent products business, its share price dropped 30% in 2012 and has stayed range bound for much of 2013. At current price, shares are roughly fairly valued. Still, long-term investors can expect an annual total return around 11%, mostly from dividend payments.

NPK was analyzed and...

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