Tag - NYSE:NPK

Merger and acquisition activity is lifting the bid for many consumer stocks. In the past few weeks, Fortune Brands (NYSE: FO) said it would focus on its spirits business, including Jim Beam, and split off its consumer goods and sports products, making them ripe for acquisition. And an investor group headed by Kohlberg Kravis Roberts is looking to unlock the value in Del Monte Brands (NYSE: DLM), which it's acquiring for $5.3 billion.

China's economy is still on a roll. Maybe not at the breakneck speed of the past decade, but the economy is still growing at a comfortable 9-plus percent.

The China Academy of Social Sciences most recent GDP forecast calls for 2010 economic expansion to finish 2010 at a 9.9 percent rate, with similar growth in 2011. The government think-tank predicts greater stability in China and little change in the government’s macroeconomic policies. The World Bank has projected China’s economy will grow 9.5% this year and slow to 8.5% next year.

On December 4^th I recommended a couple of small-cap consumer stocks because they had been passed over by investors who were seeking big returns in more glamorous companies. These two stocks have been good performers lately, so I want to give you an update on each.

The two companies I suggested you pick up on the cheap were National Presto Industries (NYSE: NPK) and Lancaster Colony (Nasdaq: LANC). I branded these two companies as 'boring stocks' and praised their attractiveness at that time. Here is what I wrote:

"I've been looking at a group of stocks that are about as flashy as a stack of corrugated cardboard boxes.  But don't let their appearance fool you, inside their drab exterior lies a steady flow of cash.  And investors who are willing to step back from the glitz of high-tech companies and the glamour of Wall Street's current darlings could be sitting on a boatload of profits in 2010 if they buy shares of boring stocks right now.

That's because this group of stocks has been overlooked as investors sought higher returns from faster moving stocks.  But after the 60% rise for stocks since March, investors are going to start buying more shares in companies that have underperformed, but still have compelling business models and shares trading at reasonable valuations.  Both large-caps and small-caps in this category should fare well, but I favor small-caps because they typically rise more than large caps."

I've been looking at a group of stocks that are about as flashy as a stack of corrugated cardboard boxes.  But don't let their appearance fool you, inside their drab exterior lies a steady flow of cash.  And investors who are willing to step back from the glitz of high-tech companies and the glamour of Wall Street's current darlings could be sitting on a boatload of profits in 2010 if they buy shares of boring stocks right now.

That's because this group of stocks has been overlooked as investors sought higher returns from faster moving stocks.  But after the 60% rise for stocks since March, investors are going to start buying more shares in companies that have underperformed, but still have compelling business models and shares trading at reasonable valuations.  Both large-caps and small-caps in this category should fare well, but I favor small-caps because they typically rise more than large caps...

Many companies are under pressure, taking heat from shareholders to deliver profits in a sour economy. If there’s one thing that National Presto Industries (NYSE:NPK) does well is handle the heat — and pressure.

Based in Eau Claire, Wis., National Presto began in 1905, making pressure canners for the canning industry. It has evolved into a manufacturer of reasonably priced products that end up in many home kitchens.

Shares of National Presto have risen 47% year to date, 11% in the past three months. On Sept. 9, the stock hit an all-time high of $80.05, after dropping to a recent low of $46 on Jan. 22. National Presto closed Thursday at $74.60.

Despite the visibility of its consumer products, National Presto stock flies under the investment community’s radar — even though it’s traded 39 years on the Big Board. Its largest institutional holders include Royce & Associates, with about 11.8% of outstanding shares, and Barclays Global Investors UK Holdings and Dimensional Fund Advisors, each with about 5.3% of the stock.

Heading up the company is Maryjo Cohen, who joined National Presto in 1976. She was appointed president in 1989, chief executive in 1994 and board chairman in 2002.

National Presto, which started as Northwestern Steel and Iron Works, is best known for its multitude of portable electric appliances and housewares, most of which are made overseas. Known as National Presto for 55 years, it gained prominence with its cutting-edge devices that eased the burden of the post-war homemaker . . .

Consumer products companies face real challenges during times when consumer spending is soft, but Helen of Troy Limited (Nasdaq:HELE) and National Presto Industries (NYSE:NPK) are weathering the current storm far better than most.

Helen of Troy Limited produces personal care products such as hair dryers, curling irons, shavers, hair accessories and skin care products under well-known brand names such as Vidal Sasson, Revlon, Sunbeam, Pro Touch and Salon Creations. The company added housewares to its product line in 2004 by acquiring OXO International, a manufacturer of kitchen tools and cutlery. HELE’s houseware sales grew nearly 20% last year and offset slower growth in the personal-care products segment. While only about a quarter of the size of its personal-care business, the housewares division contributed 43% of HELE’s 2008 operating income.

The company markets its products through mass merchandisers, drug chains, groceries and specialty stores. Product line extensions were a major driver of earnings growth last year, with FY 2008 per-share earnings improving 22% to $1.93 from $1.58. HELE introduced 526 new products in 2008 and has an additional 389 new products in its 2009 development pipeline.

The company surprised analysts in the first quarter of FY 2009 by reporting non-GAAP per-share earnings of $0.42, up 31% from last year’s first quarter and 40% above analyst estimates. This marked HELE’s third-consecutive quarter of positive earnings surprises. In addition to new products, the company expects to fuel future earnings growth with expense reductions and possibly an acquisition. Analysts target 10% annual long-term growth for HELE. These shares are reasonably priced compared with other consumer product companies at a 13 times P/E multiple and an 11 times forward P/E multiple. My $30 price target for Helen of Troy shares is 30% above . . .

Almost Family Inc (Nasdaq:AFAM), Vivus Inc (Nasdaq:VVUS) and TeleCommunication Systems Inc (Nasdaq:TSYS) are among the new 52-week highs in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: National Presto Industries Inc (Nasdaq:NPK), LHC Group Inc (Nasdaq:LHCG), Interwoven Inc (Nasdaq:IWOV), National Research Corp (Nasdaq:NRCI), Safety Insurance Group Inc (Nasdaq:SAFT) and Herley Industries Inc (Nasdaq:HRLY).

Here are the new 52-week highs among small caps:

Cougar Biotechnology Inc (Nasdaq:CGRB), LHC Group Inc (Nasdaq:LHCG) and National Research Corp (Nasdaq:NRCI) are among the new 52-week highs in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: FPIC Insurance Group Inc (Nasdaq:FPIC), National Presto Industries Inc (Nasdaq:NPK), Peerless Manufacturing Co (Nasdaq:PMFG), Emergent BioSolutions Inc (Nasdaq:EBS), Republic Banc KY Ord Shs (Nasdaq:RBCAA) and Herley Industries Inc (Nasdaq:HRLY).

Here are the new 52-week highs among small caps:

HireRight Inc (Nasdaq:HIRE), Computer Task Group Inc (Nasdaq:CTGX) and Stepan Co (Nasdaq:SCL) are among the new 52-week highs in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Sun Hydraulics Corp (Nasdaq:SNHY), National Research Corp (Nasdaq:NRCI), Wilshire Bancorp Inc (Nasdaq:WIBC), National Presto Industries Inc (Nasdaq:NPK), Tele Norte Celular (Nasdaq:TCN) and LeapFrog Enterprises Inc (Nasdaq:LF).

Here are the new 52-week highs among small caps:

Stepan Co (Nasdaq:SCL), ILOG ADR (Nasdaq:ILOG) and National Research Corp (Nasdaq:NRCI) are among the new 52-week highs in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: HQ Sustainable Maritime Industries Inc (Nasdaq:HQS), First Financial Corp (Indiana) (Nasdaq:THFF), Overhill Farms Inc (Nasdaq:OFI), City Holding Corp (Nasdaq:CHCO), National Presto Industries Inc (Nasdaq:NPK) and Cougar Biotechnology Inc (Nasdaq:CGRB).

Here are the new 52-week highs among small caps:

Chemgenex Pharma Ltd (Nasdaq:CXSP), Digimarc Corp (Nasdaq:DMRC) and Pyramid Oil Co (Nasdaq:PDO) are among the new 52-week highs in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Westside Energy Corp (Nasdaq:WHT), Houston American Energy Corp (Nasdaq:HUSA), United States Lime & Minerals Inc (Nasdaq:USLM), Almost Family Inc (Nasdaq:AFAM), Stoneleigh Partners Acquisition Co (Nasdaq:SOC) and National Presto Industries Inc (Nasdaq:NPK).

Here are the new 52-week highs among small caps:

Omega Flex Inc (Nasdaq:OFLX), Pegasystems Inc (Nasdaq:PEGA) and Kensey Nash Corp (Nasdaq:KNSY) are among the new 52-week highs in Thursday's trading among companies with market capitalizations under $1 billion.

Here are the new 52-week highs among small caps:

The Russell 2000 (NYSE:IWM) is trading in the red while the Dow is little changed.

At 11:33 a.m. ET, the small-cap index was up 2.76 points, or 0.40%, to 684.69. The Dow Jones Industrial Average (INDU) is up 24.50 points, or 0.20%, to 12,417.16.

Small-cap stocks opened with a rise following news that Morgan Stanley (NYSE:MS) saw a decline in fiscal first-quarter profit but still beat expectations. That’s good news for investors worried that the pain that from Bear Stearns (NYSE:BSC) could spread to other investment banks.

Also helping the bulls is Visa Inc. (NYSE:V). Shares of the world’s largest credit card company debuted today with a rise of over 30%.

In economic news, the Mortgage Bankers Association announced before the start of trading that its index of loan application volume fell 2.9% for the week ended March 14. Also, the index of refinancing applications tumbled 4.6%.

National Presto Industries Inc. (NYSE: NPK), known for its pressure cookers and other kitchen appliances, is hitting its mark as a weapons supplier to the military. Peel a Meal potato peelers won’t count for much in future performance compared with sales of medium caliber ammunition, a category the company has its sights on.

The resourceful Eau Claire, Wis., company, is known for a variety of small household appliances, such as pots and pans and pressure cookers, hot-air popped corn and handy dorm room pizza contraptions. It spawned the Fry Baby (“America’s original mini-fryer!”) and recently introduced the FlipSide Belgian waffle maker, promising a restaurant quality experience. It also makes private label diapers for babies and adult incontinence protection.

But alongside its aptly named SaladShooter, the company produces medium caliber training and tactical ammunition, energetic ordnance items, fuses, firing devices and cartridge cases. The revival of sales to the Department of Defense has business humming at National Presto and, based on a long-term contract, sales to the military will remain intact for at least a couple more years.

When announcing preliminary earnings for the first quarter ended April 1, National Presto’s CEO Maryjo Cohen attributed the company’s strong performance mainly to the defense segment, which had a sizable rise in both sales and earnings from the corresponding quarter in 2006. A specific military contract was key: "Heightened activity stemming from performance of the five-year forty millimeter systems contract awarded in April 2005 was the source of much of the increase," Cohen said.

Operating in three segments--housewares/small appliances, absorbent products and defense--the company's preliminary earnings bounced to $0.73 per share in the first quarter through March, up from $0.28 a year earlier. Net sales were $83 million, up from $45 million.