New BUY Recommendation – Acme United Corp.

If you ever wanted to buy a piece of the leading scissors brand in the USA at bargain prices, here’s your chance.

Acme United Corporation (ACU – $7.41) is a leading worldwide supplier of innovative branded cutting, measuring and safety products in the school, home, office, hardware & industrial markets. The Company owns three global brands: Westcott, Clauss, and PhysiciansCare, all of which serve a growing customer base that includes the world’s premier retailers and merchandisers.

During the past 5 years net sales grew 16% annually on average and earnings per share rose by an average of 34% annually in the same period. A large part of this growth can be attributed to Acme’s passion for innovation. Over 30% of its products in the Westcott brand did not exist three years ago.

Acme United is a solid, growing and profitable Company that is trading at a P/E of only 6.20 and a price to book of 1.02. It has a healthy balance sheet as it has almost $5.5 million USD in the bank and very satisfying current ratio of 5.2.

Acme United is a Company you seldom come across. Unlike so many who claim to be the number one this or the leading that, Acme TRULY owns the leading scissors brand in the USA and the worldwide number one ruler brand.

Additionally, it’s trading at low valuations, is buying back shares and pays a quarterly dividend. I give it a buy recommendation and a price target of $11.85.

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1. I like Acme United because it’s fundamentally sound with over $63 million dollars in sales and $2.5 million dollars in earnings in 2010. At the same time I expect the Company to grow substantially over the next few years as it’s bringing incomparable (really!) cutting products to the market. Download your copy of the latest Company Report.
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