The Middleby Corp (MIDD)

SureBeatsWorking (98.33) Submitted: 6/01/07 8:49 AM : Start Price: $60.98 MIDD Score: 2.34

A turnaround company from 2003 when p/e ratio was down in the 12s. They started by concentrating on their profitable product lines.

A great acquirer which is where a lot of its growth comes from. It also has a habit of acquiring companies that will complement its existing business. Often acquisition are picked up at bargain prices - Alkar Holdings was bought for .445 times sales.

New acquisition of Jade moves them into the high end residential market (although they also do commercial)! I hope this isn't diworsification and is part of an overall long tem strategy. This strategy will open up a new huge market for them to shoot at.

Tom E compares this company to Sysco who was a serial acquirer and who grew at 20% over a 27 year period.

Innovative and introduce lots of disruptive technologies - For example WOW oven that uses 35% less electricity. The Rocket Fryer that helps oil last up to 40% longer. These innovations give it a great moat.

Have manageable debt. Debt is due mainly to a shareholder friendly retirement of some shares a few years back.

Overall seems like very shareholder friendly management, Bassoul seems to live and breath this industry and I think he has a lot to do with Middlebys success.

People are dining out more. Rising energy prices are making people look seriously at upgrading to some of these disruptive technologies.

This is one of my favourite companies of all time (that is not saying too much as I have only been investing for a few years :-) ). I love the shareholder friendly, innovative management. I bought in my regular portfolio a while back at a cost basis of about 60. I only wish I'd got it earlier. This is a long term keeper, over the next 10 years I'm hoping to watch this company grow big!

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