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

Middleby Has Lots Of "Guh", Not So Much "Arp"

Institutional investors have a knack for taking a page out of Wile E. Coyote's book when it comes to growth stocks - chasing them right off the edge of the cliff and into valuations based on thin air. This is in no sense meant as an indictment of the quality food equipment manufacturer Middleby (NASDAQ:MIDD), as I believe this company is highly innovative and has numerous opportunities to grow its business over the next decade. At some point, though, even GARP investors have to acknowledge that this stock is trading a great deal more on the "Guh" part of the story than "a reasonable price".

A Relatively New Player

It wasn't that long ago that Middleby was mostly...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details