Middleby Corp. (MIDD)

All Comments on MIDD

  • commenter
    Glen
    Bradford
    Sep 14 09:32 AM
    My Website
    Oven-maker Middleby Is Ready to Heat Up - Barron's [view article]
    Well spoken, it's growing at 24% and priced to grow at 8.5%, it's priced at $55.89 right now and I have a price target of $112.98. Good news, analysts still have this company projected to grow at 24% (Trailing 12 Month PE/Next Year Expected PE) 16.07/12.85. Their historical track record is highly predictable and they serve up an ROE of 36%. The debt issues you mentioned are silly. Their total debt is less than half of their annual revenues. That's not even a debt issue. That's a company successfully leveraging its owners' equity to enhance loyal shareholders' returns. Reply
  • commenter
    George
    Spritzer
    Sep 03 12:35 PM
    My Website
    16 Stocks That Are Paying My College Tuition [view article]
    Glenn-
    Keep up the good work! Your stock recommendations are brief and to the point.

    I also posted on XIN on my blog on May 19-

    quantinvestor.blogspot...

    George Spritzer
    Reply
  • commenter
    granger
    Aug 16 10:08 AM
    16 Stocks That Are Paying My College Tuition [view article]
    Good stuff. Here are a few from my shopping list PETS and AUTH. (I own both all ready) VFC is another one I am accumulating. Reply
  • commenter
    rikikki
    Aug 14 09:11 PM
    16 Stocks That Are Paying My College Tuition [view article]
    EZPW is making me a lot of money... through short selling Reply
  • commenter
    Alan
    Brochstein
    Aug 14 06:16 AM
    My Website
    Middleby Is Frying the Shorts [view article]
    whoops - a strange truncation above - should read "aligned with the vision of MIDD to deliver innovative products that reduce energy usage or increase the speed of cooking." Reply
  • commenter
    Alan
    Brochstein
    Aug 14 06:14 AM
    My Website
    Middleby Is Frying the Shorts [view article]
    The stock didn't quite make it (yet) to the level I envisioned, but it remains above the close. A few days after the earnings release, the company announced its second largest acquisition attempt ever and the largest one should it close as is likely (Enodis was the large one that failed). The target, OVEN, has been controversial to say the least. The company's products are highly regarded, but it has a history of an inability to show profits.

    MIDD is paying a little under 2X sales, which some have viewed as expensive. I tend to look at Enterprise Value rather than just the equity portion, and one quickly realizes that the lack of debt at OVEN leaves this as a discount to MIDD on this basis. MIDD believes that they can take enough costs out of the business that a $7mm EBITDA loss over the last 12 months would be a $21mm profit.

    This is right up MIDD's alley, as they have a long history of successful acquisitions and integrations. OVEN, as Selim says, has "paid the price" to get into some large customers. The products are highly regarded and complementary to those of MIDD. There is little doubt in my mind that MIDD will do a better job than OVEN did with the same assets. MIDD didn't need to do the deal and doesn't do bad deals. I have heard the CEO speak of OVEN on a past call as having products aligned with

    Did they overpay? Given how hot the M&A area is for this industry, the company risked waiting in my opinion. I look at the price similar to the way I look at a young pharmaceutical company - this deal is very similar. The best analogy is that OVEN was like a company that had received FDA approval but was just a one-trick pony. Imagine that they had an allergy drug, but their salespeople could only sell that allergy drug. Along comes SGP, with a stable of allergy drugs and other medicines that it markets to doctors and buys the company. Alas, sales take off. SGP incurs much lower overhead than the small pharma company alone incurred in selling the drug. This is likely the same story here. Yes, just looking at profitability certainly makes it look like a risky deal, since OVEN wasn't making money. Even looking at sales can make one question the value. At the end of the day, though, this is an asset purchase, not an operating company buy. I expect the market to figure this out rather quickly.     Reply
  • commenter
    MyBigWinner.
    com
    Aug 13 11:27 PM
    16 Stocks That Are Paying My College Tuition [view article]
    I agree with Hurco.
    A semi annual show is this September. They are introducing 5-axis machines that are 20 to 30% less than the competition. Great Company.     Reply
  • commenter
    forgetalpha
    Aug 13 04:31 PM
    16 Stocks That Are Paying My College Tuition [view article]
    I hope you're not really banking on these stocks to pay for your tuition bills. Many of those stocks are highly speculative, I will agree that SIGM is highly undervalued but many of those aren't. I'm not suggesting a broker or anything because I dont believe in their advice half the time, but I would suggest a much more conserative strategy when it comes to paying back debt. Those 16 could be great holdings at a young age considering you could take loses and just wait them out. I do like SIGM though. Reply
  • commenter
    Logan
    Flatt, CFA
    Aug 13 12:20 PM
    My Website
    16 Stocks That Are Paying My College Tuition [view article]
    A very misleading title to this article. It appears that little to no tuition is being paid for in cash at the present time by means of holding these equity securities. I would recommend re-posting this article with a more accurate title; for example: "16 Stocks in Which I Am Speculating In the Hope of Having a Pile of Cash By the Time My Student Loans Come Due".
     Reply
  • commenter
    rpfinley
    Aug 13 11:36 AM
    16 Stocks That Are Paying My College Tuition [view article]
    What proceeds, maybe I am confused, but from 7/2007 to 7/2008 you have losses of $1225 dollars. How is that paying for anything? Reply
  • commenter
    mwswi
    Aug 13 09:06 AM
    16 Stocks That Are Paying My College Tuition [view article]
    Thanks for sharing your thoughts regarding your investment portfolio. Since I know few young people who invest -- let alone have any interest in learning how to save -- I commend you for putting together a plan that suites your needs. And like most plans, I'm certain that you'll continually monitor and fine-tune it as you go along. Keep up the good work and best of luck in the future. Reply
  • commenter
    Oldguy67
    Aug 12 11:35 AM
    16 Stocks That Are Paying My College Tuition [view article]
    If you want to make money long term, buy dividend paying stocks with a
    return of 5% or higher, earnings increases in 4 of last 5 years, P/E under
    20, payout less than 80% except for REITS.     Reply
  • commenter
    timmywampus
    Aug 12 11:17 AM
    16 Stocks That Are Paying My College Tuition [view article]
    you must be underpaid, the going rate for engineers is 1.5-3x your total invested capital. If you're making 200% gains in this market to beat that, then you should work on wall street. I'm a PE and only beat the S&P by 2% generally. I'll keep my day job rather than hope to find close to the $1M invested at historic S&P returns to pay my salary. Reply
  • commenter
    remarkl
    Aug 12 08:41 AM
    16 Stocks That Are Paying My College Tuition [view article]
    Thanks for sharing tips. But if I read your spreadsheet correctly, all but one of your closed transactions were losses, so that your net results are nearly flat. I get that it's smart to sell losers and hold winners, but not if you are then going to tack a percentage "return" on the winners without adjusting for the losers.

    Also, if you think a stock is undervalued, you need to accept that it may become more undervalued before it becomes less so. In other words, if your view is essentially contrarian, you cannot afford such tight stops, I am familiar with only one of your calls - DWSN - and all I can say is that I bought more when it dropped to near 50 and now hold above 60, whereas you sold at a loss. If you believe in your picks, you need to ride them more faithfully. Indeed, if you think they are home runs on the upside, you need to be willing to take some serious hits on the downside. Otherwise, you will stop yourself out of your best picks.

    Bottom-fishing is overrated. The time to buy a stock is when you are sure it's underpriced, not when your sure it's hit bottom. Then you hold it until the market catches up with your appraisal, i.e., until owning it further will not in your opinion produce another home run from where it sits.     Reply
  • commenter
    Fellow IE
    Aug 11 09:21 PM
    16 Stocks That Are Paying My College Tuition [view article]
    none of your picks are the popular ones and I am curious to know how do you pick stocks, I mean your philosophy. I like your spreadsheet, I have been looking over places to get good data and this is gr8. BTW, I am fellow gator IE and preparing for GMAT -- Nice to see engineering fellas in stocks.
     Reply
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