Hardinge, Inc. (NASDAQ:HDNG)

CAPS Rating: 5 out of 5

The Company designs, manufactures, distributes and markets computer-numerically controlled metal-cutting lathes, machining centers, grinding machines, collets, chucks, indexing fixtures, and other industrial products.

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Player Avatar DoubleAmerica (93.31) Submitted: 10/5/2011 9:30:18 AM : Outperform Start Price: $7.29 HDNG Score: +15.52

HDNG has been a volatile stock in the past and will probably continue to be in the future. The company is in a very cyclical industry but management seems to know these cycles well. The reason I'm attracted to it is it's trading at half of book value and I feel its trading well below liquidation value and takeover levels. Early last year they received a $10/sh takeover offer, so I feel that indicates the value here. Even though their business has begun to turnaround, resulting in increased revenue and profitability the past few quarters, the stock price continues to falter. I don't believe the market is correctly pricing this company's outlook and the stock price will significantly improve as the business continues to generate profits.

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