I’m still puzzled by the valuation of HURCO. Let’s recap:
Market cap: $132m Book Value: $126m P/E: 9.04 P/S: 0.65
However, the company has $47m in cash, and total current assets are $164m. Current liabilities are only $60m. Debt is minimal at $2.6m. PPE is only $11.4m. The only thing that is see as negative is an increase in inventory from $80.4m to $92.9 m. There is no comment about this in the quarterly report though.
Why is this stock trading at ~$20 not not ~$25-30? That would seem like a fair range…