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Hardinge: Warren Buffett Would Love This Company

Let's compare some metrics for the companies:

ROE TTM Edge HURC:
HURC 24.24%
HDNG 4.11%

Balance sheet Edge HURC:

HURC: $29mm cash or almost $5/share
HDNG: Net debt of $15mm

Geographic exposure:

HURC end OCT '07: Americas 27.7%, Europe 66.7%, Asia Pacific 5.6% >> It is unknown by me how much of the Europe exposure is Eastern Europe. I would love to know that fact.

HDNG : Americas 34.1%, Europe 46.4%, Asia & Other 19.5%

So it seems like HDNG is actually more levered to the U.S. economy than Hurco......

Profit Margins using round numbers from the last fiscal = Edge HURC

HURC: 37%
HDNG: 30%

Executives edge = HURC (though I realize I am utilizing a very small set of information)

HDNG's CEO resigns May 23rd "in the best interest of the company."
HURC: Haven't heard much......

FCF yield edge HURC:

HURC TTM: 13.0%
HDNG TTM: 6% with two of the last 4 quarters reporting negative net income.... I'm sure there are some "one-time" charges in their but I am too lazy to look them up....

Revenue grwoth Y-o-Y (2008/2009) per analyst estimates:

HURC: 9.8%
HDNG: 3.9%

You get my drift though... If any company is undervalued, it would be HURC