Hawkins Just Keeps on Charging

Sep.23.10 | About: Hawkins, Inc. (HWKN)

A few months ago, I highlighted Hawkins (NASDAQ:HWKN).

One company that I’ve followed for many years is Hawkins Inc. Talk about unloved! Barely anyone follows widdle Hawkins. Yet, this has been an outstanding stock for decades! (BTW, I’m not recommending the stock. I’m just using them as an example.)

Hawkins is a specialty chemical company based in Minnesota. So if you’re in, say, Fargo and you need a shipment of sodium hydroxide, well...these are the boys to call. They’ve been around for many years and the company is largely in family hands. They do what they do, and they do it well.

The odd thing about Hawkins is that they used to split their stock almost every, but by small amounts. You’d get a 10%, 15% or 20% stock dividend each year. As a result, the nominal share and dividend price didn’t move much, but the stock really did very well.

This is the kind of stock I love finding. It's a tiny micro-cap that nobody follows. The odd thing is that the stock has taken off over the past two years. While the rest of the world was falling apart, Hawkins has soared. (Click to enlarge)

big.chart092310.gifClick to enlarge

The shares hit $36.99 yesterday. The stock is up more than four-fold since early 2003, and it's close to a triple in the last 18 months. Even after this impressive run, Hawkins is still less than 1/100th the size of DuPont (NYSE:DD). Over the last 30 years, the stock is up about 80-fold. That's better than Intel (NASDAQ:INTC), yet no analyst currently follows it.

Disclosure: None