The Middleby Corp (MIDD)

TMFPlatoish (37.70) Submitted: 10/07/06 4:32 PM : Start Price: $41.49 MIDD Score: 24.61

Great little company with top notch management approaching the commercial kitchen with technology. Their energy efficient products will have long legs. They are playing into some really strong trends including the increase in eating outside of the household, as well as participating in the buildout of restaurant chains all throughout the world. They have shown the ability to expand through accretive acquisitions, while continuing to grow organically at rates in excess of 50% higher than the overall industry. The latest acquisition gives them increased European presence which they should be able to leverage, while also providing access to the US for Huono's products through existing Middleby distribution channels. It is my feeling that the uncertainty over the proposed Enodis acquisition caused some temporary mispricing of its stock. I expect things to get back on track with Q3 results. I think this company can appreciate 15-20% annually from higher levels than it is currently priced. That should be good enough to outpace the S&P 500 - Outperform!

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