Multi-Color Corp. (NASDAQ:LABL)

CAPS Rating: 5 out of 5

Supplier of printed labels, engravings and packaging services to consumer product and food and beverage companies, retailers and container manufacturers located in the U. S, Canada, Mexico, Central and South America.


Player Avatar uswdeng (< 20) Submitted: 7/16/2009 12:34:02 AM : Outperform Start Price: $12.48 LABL Score: +214.98

I like this one. It has dividend...

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Member Avatar pjgz (46.70) Submitted: 2/19/2010 1:12:48 PM
Recs: 0

What are we missing here? Virtually every Fool is losing their ass on LABL. Some smart investors are making a boatload of $ selling LABL short, or at least by bailing out. What has been their reasoning?

Granted the general economy are market are down compared to '07, but what is wrong with LABL?

They are making $. They are paying down debt easily. They are paying out little cash on the divendend, so once the Collotype debt is gone they will be building up cash again for future ____'s. So why still sliding?

Are you seeing LABL in the same light?

Member Avatar ryukuma (< 20) Submitted: 2/19/2010 5:16:50 PM
Recs: 0

pigz - Im wondering the same thing. I don't see any reason for the slide.

LABL has increased revenue and net income in the last quarter and has been paying debt. What's with all the pessimism in stock price been about? I would expect the Collotype acquisition, some facility closure expenses, and moving of headquarters impacting earnings are scaring people off although it should not. The moves contribute to cost-cutting efforts and are non-recurring expenses - good things.

I still consider LABL to have a lot of value at current market price.

Member Avatar pjgz (46.70) Submitted: 7/13/2012 1:00:32 PM
Recs: 0

I agree, and am going all in again, just as I did in Spring 2010 at $12/sh, before bailing out at $24 last year.
I am convinced the market is scared of all the debt, and do not realize how easily LABL cane to pay it down and still increase profitability with bigger, more steady revenues. Nigel is making huge bets, expecting to get rewarded as the valuation rises. Remember, he got a sweet deal in huge options grants when Collotype was merged with LABL, and he is betting the farm.

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