I still like this company and it's latest earnings may help get my portfolio back on track. It may be a little late to get in at this point but this stock tends to fall until the quarterlies are reported, so you may want to keep an eye on it. If you need a little refresher on the company, here are the plus/minuses: Plus:
- High effeciency, US made motor. The brand that everyone starts with when purchasing new motors.
- Consistant purchased product no matter what the economy.
- Metal prices have dropped while motor prices have stayed consistant.
- Future looks bright as they already make the highest efficiency electric motors and have recieved help with the US gov't to make the next iteration of the product.
- Begun some China production to support that market. (US production supports the US and Europe).
- Has consistantly beaten market expectations for at least 2 years.
- I absolutely think this stock will take off when either the economy turns around and/or real funding is released for green/smart energy occurs.
Minus:
- Carry quite a load of debt but doing extremely well at paying it down. This is the biggest risk of the company.
- Sales have fallen, but not as drastic as most industries.
The Articles:
Baldor Electric Company Announces First Quarter 2009 Results
UPDATE 1-Baldor Q1 profit tops Street; warns of difficult Q2
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