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Acme United: Cost Savings And Facility Acquisition Will Boost 2014 EPS Growth And ROE

(Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.)


Acme United (NYSEMKT:ACU) is admittedly a boring business - the company manufactures and distributes knives, office supplies, and first aid products to school, home, office, and sporting goods markets. Despite selling seemingly commoditized products with zero barriers to entry, the company has achieved an EPS CAGR of 18% since 2002 while posting average return on equity of 15%.

I am pitching ACU as a buy, as it is my belief that the stock should be selling at least 20% higher based on strong...

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