Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, overhead and underground network products specialist Preformed Line Products (Nasdaq: PLPC ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Preformed's business and see what CAPS investors are saying about the stock right now.
||Mayfield Village, Ohio (1947)
||Electrical components and equipment
Chairman/CEO Robert Ruhlman
CFO Eric Graef
|Return on Equity (Average, Past 3 Years)
||$22.66 million / $12.5 million
3M (NYSE: MMM )
Corning (NYSE: GLW )
Tyco International (NYSE: TYC )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 288 members who have rated Preformed believe the stock will outperform the S&P 500 going forward. These bulls include robertshrestha and All-Star ikkyu2, who is ranked in the top 5% of our community.
Earlier this week, robertshrestha highlighted several of Preformed's positives: "Small size leaves lots of room for growth, heavy insider ownership, reasonable price multiples, and a decent dividend to boot. Solid pick."
In fact, Preformed currently boasts whopping individual insider ownership of 46%. Meanwhile, its much larger rivals 3M, Corning, and Tyco International all have negligible insider ownership levels of much less than 1%.
CAPS All-Star ikkyu2 elaborates on the opportunity:
Volatile little company that makes wireline and other subterranean infrastructure, with 50 % of its business coming from rest-of-world (ex-US).
It's been on an acquisition spree for the last 4 years, getting rid of some free cash, and the goodwill and amortization numbers have sort of confused the balance sheet. The latest acquisition, Dulmison, bought from Tyco Electronics, serves the 'transmission, distribution and fiber optic' arena and as far as management seems to want to state, the acquisition has been immediately accretive. ...
I think upside could include greater profits from integration than is currently realized (gritting my teeth, because so often the opposite is true,) a stronger economic recovery worldwide, and a possible moderation of commodity costs. Downside is pretty much the mirror flip of the above -- higher commodity costs, worldwide stagflation, and the usual integration snafus.
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