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

Park-Ohio Holdings May Yet Have Leverage To Future Industrial Improvement

A lot of industrial stocks have strengthened since the election, and Park-Ohio (NASDAQ:PKOH) is no exception with a nearly 40% jump since early November. Unlike a lot of other industrials, though, it may be the case that Park-Ohio's surge hasn't completely captured all of the value from the prospect of improving industrial markets. Certainly, there are things to be concerned about here. The company is heavily exposed to the auto sector and unit volumes in that market may have peaked. The company also has a large amount of debt relative to its equity and goodwill and intangibles make up more than 80% of the equity that remains. That said, the company has shown that it can cut costs ...
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