Analysis of report
Summary:
basically hurco is a company dealing with laser welding of steel parts. it reported a 97% drop in revenue in Q1, and has continued to post losses in this quarter. Looking forward, it has large stocks of uncleared inventory, poor future sales bookings for the next quarter, and a decrease in sales worldwide.
Recession is still at hand. My dad just told me last night that a friend owning a 500m steel manufacturing plant had to liquidate his assets due to unprofitability in this climate, and unrelenting lack of orders amidst an unabating recession...i guess HURCO's performance proves him right.
Still, fundamentally hurco has large reserves, huge book value and asset value per share, no debt, and moderate free cash on hand. I have a 3% position of hurco in my portfolio, and i will continue to hold out for the next 2-3 years.
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