Polypore started things out strong with back-to-back earnings announcements that smashed expectations. Though management never gave specific outlooks, it repeatedly cited increased demand for the company's products as reason to view the future optimistically.
During the first half of the year, that was music to investors' ears.
But then in August, things started to head south. Even though the company recorded an eye-popping 85% increase year over year, investors didn't like what they heard moving forward.
To Fool contributor Neha Chamaria, that reaction seemed silly. The main reason the company told investors to temper their short-term outlook was a good one: IT would be spending money to expand its capacity to meet customer demand.
With battery companies such as Exide Technologies
So even though the company finished 2011 on a down note, I believe Polypore could have a bright future.
2012 and beyond
Though I believe the future is bright for Polypore, it's not The Motley Fool's Top Stock for 2012. Instead, our analysts have found a company that has all the greatness of Costco baked into its DNA but operates in the quickly growing economies of Central and South America. Get your copy of our special free report detailing the company today, absolutely free!
The Motley Fool owns shares of Cisco Systems and Ford and has created a bull call spread position on Cisco. Motley Fool newsletter services have recommended buying shares of Polypore International, Cisco, Ford, and Tesla Motors and creating a synthetic long position in Ford. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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