Kadant, Inc. (NYSE:KAI)

Too much smoke and mirrors in the finacial data - they are bleeding badly

Zacks Pick

Until paper becomes obsolete - always a niche for the smaller players.

POLLUTION TX

Companies in bizarre business areas with low debt will come out of the current financial mess smelling like fertilized roses. Kadant seems to be a strong candidate. Historical prices and earnings suggest that this company is a cyclical, booming and busting as recycling goes in and out of fashion. How anyone could have paid a PE of 60 for this company is beyond me, but hey, them was the days, right? Todays numbers seem much more in line with what I would expect. Heck, we might even get lucky and see brighter days ahead for recycling profits. If so, this could be a market thrasher, not just a decent stock in a tough time. I like their low debt, their steady earnings, and their share buybacks. Heck, the more I look at the numbers here, the more I like these guys for my real world port.

How much wood could a woodchuck chuck if a woodchuck could chuck wood?

I like the product. P/E looks attractive. Seems to be posting modest gains year after year. Green play. As pulp sources are mowed down in favor of agriculture and cities recyclable paper will continue to be at a premium, especially in world markets.

A potential worldwide play and green company that promotes recycling and conservation of water… What’s not to like?

Kadant makes paper products out of post consumer recycled paper as well as using post manufacturing waste to make a biodegradable soil product for the retention of moisture which sells to gardeners, farmers, is used on lawns and for ornamentals. I am very thrilled about the very positive impact oif this company on the environment. They made a small profit and added to cash flow for 06.

Reasonable valuation, projected growth rate by analyst may be on the conservative side. Stock chart looks attractive. It just broke above its long time trading range.

CAPS made me do it

Underpriced with good financials

These folks are the players when it comes to paper processing machinery and associated fluid systems. they are established in sales/service/parts in the BRIC countries and are the lead dog.
Mush!

Kadant's work in China will continue to fuel their growth. Accelerating sales and earnings will drive the stock price higher.

Also, favorable valuation compared to peers.

If there's anyone left who thinks, or wants to hope that technology will end its galloping quest, such will find themselves being mocked Simon-style---the often snide talent judge on American Idol.

What happend to my type of television? Has television a valuation bubble similar to the dot.com era?

Because i was just reminded of some ridiculous Buck Rogers' scenes, (a long ago pop-culture comic book, radio and film hero) i answer that question this way: No ! Television is safe from a dot.com type bubble. It is doing what it should--- pitch at targets. By using television's 50+ year history, it is easy to believe technolgoy will not cease.

Kandant (KAI,) will not be left behind for an indifferent attitude toward technology. Yes, KAI struggled from 1998 to early 2001. And has mostly moved sideways since 2001.

But along came China and along came their needs. China needs more than Coca-Cola. Next time your filling up your paper cup with Coca-Cola think paper ! And think brown paper. Like the brown paper (cardboard) in which that cup was shipped.

In fancy terms, part of the process of profitably shipping such items is called "stock preparation equipment.'

KAI's whole business model, as we are told by analyst, conference calls has changed.

Acquisitions, sales, management, cash flow are positive aspects of this corner-turning company.
And those things are reflected in its 25% growth since last reported----(Value-Line.)

VL

EPA regulations are going to affect business protocol more and more in the future. Products manufactured such as the corrogated materials produced by Kadant are becoming increasingly popular for shipping companies worried about EPA restrictions in the future.

Fast growing company... Great management