National Presto Industries, Inc. (NPK)

Company with good earnings growth relative to earnings that the company re-invests. Helps that CEO is a big shareholder.

NPK (National Presto Inc.)
This is a nice boring company that I believe is undervalued precisely because it is such a boring (yet cash cow) company. They make small appliance items for the kitchen primarily. You can check out their products at their website: http://www.gopresto.com/ Next years estimates for revenues are roughly $525 million, up from just over $300 million in 2006, so it's not like it's a non-growth company, it's just not in a sexy industry like the next non pick is. At just 12 times both trailing and forward earnings they can easily afford their measly $1 dividend (for a 13% payout ratio), not to mention they have $0 debt and $135 million in cash.

RK

I love the balance sheet, I love the products, and I love the effectiveness of management.I also appreciate the small-cap returning some cash back to shareholders.

moneycentral rated: 10, navallier rated:A

This account tracks the performance of newly minted 4 star stocks - 3 star stocks that recently turned in to 4 star stocks.

It's good at present, undervalued, maybe. Sales go up around December (wonder why?). All its metrics are good just now.
But still, PE ~10 isn't brilliant for a simple commodity seller. So for now it will gain, but in a few years, it'll get tired, and drift.
Sorry to say.

Excellent cash flow and growth. No debt. Dividend 1.27. What's not to like other than practically no analyst coverage?

weird... wanted to make this a limit order. oh well, we'll see how it goes. ammunition, and diapers, it seems, and a pristine balance sheet. ammo is selling off the chain these days.

All 5 Nasdaq Guru Screens cmae back as a buy.

NPK's stock price has had a run, no doubt. But the history shows 20+% earnings growth, virtually no debt, lots of cash, and a record of paying out muchof the earnings in dividends. It's an odd mix of products; ammunition, adult diaper products, and cookwares, but they've made it work. This one is flying under the radar, as it is too small for many analysts, though this one is by no means unknown to those who follow the small to midcap universe of stocks and fund managers in those categories. Note the low P/E ratio compared to earnings growth.......and you decide. I own some and will add to my position in market weakness. My screen lists the beta as .83, but I think lately it has been higher. I plan on holding for 5 years or more. Some would say that it is right at its fifty two week high and subject to a pullback, which may be true, but considering the growth record and low debt, I consider it cheap.

1% of the IBD 100.

The pitch for this stock can be found on the Stinky Feet bulletin board at http://boards.fool.com/Message.asp?mid=26988317 . Hope to see you there to let us know what you think of this stock.

When times are tough, I love companies with no debt, lots of ways to make money, and growth opportunities. This company is a bargain with P/E of 11.46

IBD

3 Operating Segments - Think bullets, blenders, and diapers

Housewares/Small Appliances – $131.3M or 31% of total revenue

Absorbant Products - $65.1M or 15% of total revenue

Defense Products - $224.4M or 53% of total revenue

everyone has gotta love the fundamentals

No more cooking dead rat over fire pit... now use National Presto appliance...

mgiv

The pitch for this stock, and a discussion on its merits/faults, can be found on the Motley Fool Stinky Feet discussion board at http://boards.fool.com/Messages.asp?bid=119057&mid=26922092

Stop by and let us know what you think.