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

Multi-Color Showing Hints Of Stronger Operating Leverage

In the slow-growing label business, operating scale and efficiency is the name of the game and Multi-Color (NASDAQ:LABL) showed some encouraging progress in that regard in the company's fiscal second quarter. I've written multiple times on this under-followed small-cap (here, here, and here), and the stock is up a solid 74% over the past year. Although I do believe there is significant room for Multi-Color and rival CCL Industries (OTC:CCDBF) to further consolidate the industry and drive better operating margins, expectations have definitely changed. I'm not in a rush to sell today, and I can see a path to a fair value in the low $40s, but this is definitely a situation...

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