Wrong MIDD is headed back up to and over $100 per share based on earnings and growth that this company has before it....
Looks like you will have to chase it very hard now if you want to get back on-board.
LOL, we're still above $82 the last time I checked! You may still be right about today, but it's likely to kiss $85 before it strikes $77. Good luck with that short position.
"Kitchen of the Future" has been installed in about 200 stores--- smaller chain operators. BUT....here's what strikes me as a huge possible plus. Evaluations still ongoing with "KoF" in many large chains....apparently no commitments yet (save for Chili's which did it a few years back and wrote a corporate check to cover company-owned and franchised stores) but the feedback has been positive. I take this as only a matter of time and, like most corporate decisions, these moves are started by one operator and then the other chains get on board since no wants to be left behind. I further assume that, versus Chili's, the current "KoF" reflects even newer equipment than what Chili's bought.
I was afraid coming into yesterday's earnings report that MIDD might only achieve the consensus earnings of $.75 which, to me, would be below the company's historical growth rate. Last quarter's miss obviously disappointed many, including me, and the resulting stock price compression occurred at investors took unkindly to the miss.
With a nice beat on both earning and revenues, I feel much better...but I'm still being cautious because of macro global events...the worldwide slowdown remains an intermediate-term worry. On the more positive side, dining out is still doing well and chains will continue to use MIDD's technology (OK, kitchen equipment) to lower costs and gain a competitive edge.
The rollout of the residential program and some added spending to strengthen that program will have to be watched but I believe the company has a huge market opportunity in this area and I expect them to manage this opportunity successfully. Just like restauranteurs, most homeowners all want the latest and greatest in their kitchens and MIDD appears to have a top notch brand.
Bottom line: 25% longer-term growth may be a challenge but I think they can manage 20% and keep a premium multiple as "best in class" especially in the commercial kitchen field. Last point: I'm sure they will continue to roll out new products that enable them to keep their leading position.
Never mind they came out as I posted results look good and should be well received tomorrow....
Added at 71 to my long position.. this is roughly the 38% fib retracement level from the low of Sept 2011 to the peak in Feb 2014. 50% retracement is down around 62. Need to see good earnings next week... will they deliver?
A big volume spike was triggered on Jun 27 when the stock dipped below the 200 day SMA and after a brief recovery a sustained downtrend kicked in. On the daily chart the 50 period line crossed down through the 200 in early July. Now, on the weekly chart, the 10 period SMA is set to cross down through the 50 period line. That hasn't happened since way back in early Sept 2011. Unless there's a big pop on earnings next week this could get ugly.
Turbo chef was a better stock...
Middleby a good co, but not a great stock...rev growth will slow unless they find acquisitions...problem is they are bigger now so it takes bigger deals...look at Viking...obviously they wanted to get more into residential, but they are having problems. Eventually I think they do have the technology, but it won't be that easy.
Valuation steep here...revisit at $65 on long side...or lower if market gets hit
You are wrong!! They are working on entire commercial kitchens for the restaurant industry and when you think about all the casual restaurants opening up all over the world, this is a cheap stock! As important, after the split there will be more shares available for funds to buy. Right now because of the low float, some funds are not allowed to buy because of illiquidity. I used to own TURBOCHEF, which was bought out by MIDD.
Sentiment: Strong Buy
looks like viking continuing to underperform....no new acquisitions....probably harder to find good deals that will move the needle...any pop from the split that has happened or will happen likely short lived...
going to look at the long side around $200
At least, it appears you picked up a few cheap shares. Good for you on that count.
It's funny how we never have enough of what goes up and too much of what goes down :-)