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Middleby was hit today - I am watching!



May 08, 2007 – Comments (0) | RELATED TICKERS: MIDD

Middleby (MIDD)

Reasoning: Business

• Good set of metrics measurement by management

• Proven capability in keeping up with the latest trends of casual dining in multiple areas. Business friendly technologies (emphasis on shared metrics and joint development) which encourage joint partnership and strategic customer growth: o Packaging for home takeaways

o Trans-fat reduction legislation

o Energy efficient o Example: - Mini-WOW – 35% faster, 30% more energy efficient and space saving - Rocket fryer extends life of oil used (disruptive technology)

• Interesting dynamics for Huono and Jade Products (targets baby boomers)

• Good insider holdings ~30%. Selim Bassoul has a USD 42m stake which is highly significant

Reasoning: Financials

• Stellar financial ratios and metrics

o Operating margins are 19% as a percentage of revenue

o Return on assets of 18%

• Owners earnings and EPS are growing at a rate of 32% in Q107

• Carries USD 65m of debt but has proven history of strong/growing cash-flow and prudent management of capital.


Q107 Earnings Results

Conference call notes

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