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$42.13 -0.40 (-0.94%)
7/3/2008 1:00 PM

The Middleby Corp (MIDD)

CAPS Rating:
****

The Company designs, manufactures, markets, distributes and services of a line of cooking equipment and related products used in all types of commercial restaurants, institutional kitchens, and food processing operations.

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Avatar herb41 (< 20) Submitted: 7/14/07 4:11 PM : Underperform Start Price: $62.52 MIDD Score: 14.11

as good as this company's prospects look and as strong as its returns on capital are, I just dont see much margin of safety here. According to my discounted FCF calculations, the market may be pricing the company at 20% growth in the next three years followed by 5% thereafter. I assume a discount rate of 10%, which is pretty generous I think. The huge runup the stock has experienced lately seems to have closed the door on the value play opportunity. It looks like it will take some really tremendous growth to justify the current price.

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Avatar Prodigy16 (86.87) Submitted: 8/01/07 10:09 PM

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FCF calculations... doesnt seem to be working so well...- Investing is an art and a science- Many people forget that. Numbers dont tell the whole story

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