any appreciation LT holders of MLHR saw came from 1995 till the end of 98. From 99 until present, you've gained absolutely nothing but are nearly back to 98 levels. Unless this trend breaks, yes, I would think that history reason enough for a downgrade.I'm not saying the stock can't be traded profitably, and buying on the plunge prior to earnings was a good idea, but to hold.
Certainly seems like the inflation cycle is ramping up. Air Products, I stock which I own, announced the other day that increases of up to 15% on many of its products can be expected. Also, trucking companies have been warning, and most trading at near 52 week lows, they will begin to pass increased cost on. Dell has already eliminated many shipping perks on its products. Thats inflation.
Nice try, but you made it too simple! Let's look at the 5 year history....
MLHR in 2000: 30 MLHR today: 30 Dow in 2000: 11,000 Dow today: 10,500 NASDAQ in 2000: 4000 NASDAQ today: 2000 S&P in 2000: 1400 S&P today: 1200
There are a whole bunch of unprofitable investments since 1999, thus your argument needs that perspective for any consideration (c'mon, you're smart 'nuf to know that, ain't ya?). The shocks to the market since 2000 have rocked most every stock. You used P&G for comparison; how convenient! Maybe 5% of stocks have performed as well as P&G, so if that's the yardstick, you can disparage just about every company on Earth.
MLHR has consistently met or exceeded their guidance over the past 3 years. That's the facts, and very few companies can say that. Investors trust MLHR management because they have been proven through tough times. Sounds like a stock to buy and hold to me.
Can't handle that? Then you better stick to soap and toilet paper. ;)
Comparing to the averages is a suckers game for the benefit of mutual fund investors that don't care to do their own dd. Even my only fund, DSM, has outperformed the averages in the past 5 years, and thats simply in muni bonds. It's not very hard to buy stocks that consistantly grow in value. Yes, soap and toilet paper for one, generic pharma, agricultural commodities and the list goes on. MLHR was a dotcom success story in the 90's and suffered the same downturn. The company has done a great job, but thats just to attempt to grow as tall as it once was, and likely no taller. I could have used HNI as an example, though I no longer own stock in it. It also performed a smidge better than MLHR in the 2 years I owned it. Of course the hearth division didn't hurt to have during the housing boom. If your a balanced fund, and you've got to be in the sector, one could argue for MLHR as the pickings are pretty slim in the group, but why an individual would by and hold is beyond me.