Acme United (ACU – $9.75) is growing fast internationally. During the third quarter of 2010, European and Canadian sales grew 22% and 9% respectively. In order to continue that growth, the Company is hiring additional sales people in Asia and Europe.
The coming months are very interesting for ACU.
This month and early 2011, a new line of Camillus knives and two complete new lines of Clauss garden tools will enter stores.
Additionally, Acme United is increasing its distribution worldwide. For example, the new Clauss Damascus knife set was first introduced at Cabela’s a few weeks ago. This was the very first Acme United product ever carried by Cabela’s. And the Clauss garden tools will be available, amongst many others, at a new chain.
Oh, and have I already mentioned that Acme has one of the lowest P/E’s in the office products industry, has over $7 million in cash and is paying a 2.5% annual dividend?
Based on this growth potential, we reiterate our buy recommendation and adjust our 12-month price target upwards from $12.15 to $13.04, which is attributable to the average P/E increase for the industry.
Click the “Download” button to read the Third Quarter Company Report.
|For important disclosures, please read our disclaimer.|