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Stock picking a winning prize is like thoroughly scrutinizing and assessing back and forth a stock until you see the tug of war (if there is much of one when accessing a company’s weak points) is one sided..Then you have a winning trade. That was the process that happened in early Jan ’08 when I ran across a small to mid-cap of MIDD..We recommended the stock on 2/23/09 and we both knew it would beat its earnings by a lot especially with the Turbochef acquisition..Their cost synergies of acquiring a demand giant catalyst to any economy and this to be accretive to earnings makes it in my opinion a giant growth stock still..And the Turbochef’s acquisition will show this accretion to earnings by their very ROIC/WACC exemplory stake -where MIDD acquires many commercial food service companies that have conveyor ovens,convection ovens, baking ovens, proofers, broilers, fryers, combi-ovens, charbroilers, steam equipment, pop-up and conveyor toasters, steam cooking equipment, food warming equipment, griddles, ventless cooking systems, coffee brewers, tea brewers, and beverage dispensing equipment. Wow -that is a big load that offers essential devices that feed our mouths in any economy..What Selim Bassoul,the CEO along with management is buy such companies on the cheap-sale the lower profit margin equipment from the get-go and keep the manufacturing base of the higher ones and go to conferences of the industry and sell these cost efficient ovens that save energy costs for the like of the Pizza companies,the KFC’s of the world and makes money buying existing equipment already set in commercial food industry on the cheap..

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Alot of Yahoo Message Board people think that lower expenditures at such Fast Food Places hurt MIDD..Look,while many of us are sleeping-ovens are on from the early morning such as Hardies and McDonalds and they run all day and all nite till closing..I know I use to work parttime at Dominos and no matter how slow it goes–1992 was the slowest in its history and the ovens pretty much stay on all day no matter how slow it gets..In fact,after talking to a manager once about the energy cost of such conveyor ovens –it would make it compelling for such food industry using ovens thatb they would strongly want cost saver ovens like MIDD..These companies absolutely would help their operating costs tremendously by doing such which makes them good in any economy…Also,if restaurants close because of this economy–usually those type of commercial properties have a higher chance of being replaced by a food service one than another type..What happens when that happens..New private investors of a new opening of a restaurant will turn to MIDD for the cost efficiency of those ovens that run most of the day..Its MIDD’S manangement that constantly holds thses conferences around the world that penetrates all kinds of area still growing like China..There was an Owner Earnings Calculation using MIDD’s organic conservative 9% growth without any new acquistions by investment advisor last January – Dan Wieman and the stock would be worth 49.86 a share and that was the lowest sieve done by him-heck in the one earnings for 3rd quarter MIDD still had 16 % earnings growth is 78 % per cent higher than that mere 9 % growth ..And steel prices were much higher in January of 2008 when Mr Wieman came out with that Owner’s Earnings Calculation..That would hit margins a little more than now -when they are a lot lower..I will leave it at that..MIDD is highly leveraged but given the interest rate carry cost levels now in this economy,it is quite a bit lower than in a normal economy..MIDD will hurt in this economy just like everyone else in this one but what they have proved over and over is that they can squeeze out earnings out of this economy than most other companies..

MIDD beat 4thy quarter earnings by 15 cents! Its earning’s estimate was 89 cents and it achieved 1.04..We recommended on our blog on 2/23/09 and we recommend it at these levels right now..If according to the CEO Mr Bassoul expects the reduced costs of steel to benefit the second quarter and second haf of the year..Products such as the TurboChef-I Series, the Middleby Marshall Mini-Wow! Conveyor Oven and Pitco Rocket Fryer he believes will gain momentum in the year..So will I predict MIDD’s stock price will in the year ..When you slaughter earnings in this environment–potential buyers and even shorts take notice and the no sale signal may then begin..Unless we recommend a sale otherwise,we strongly recommend a but until about August if the stock price hits in the 60′s –this market may dislocate its actual valuation for a while longer..Here’s the strategy–it can go way up this Monday-if it does –dont buy–if it’s up a little can ahead and buy..Otherwise wait till a slight intraday pullback before buying MIDD..Ovens are basically on almost 70% of the time no matter how slow business is at many fast food places–in an industry where we will keep eating and companies will look for cost savers epecially in this environment..MIDD is a strong buy in our opinion…..Keep those oven on–I am hungry for MIDD!!! I believe after the 3/4/09 earning’s results so will hungry investors trying to beat the market..Prediction–MIDD at these levels will beat the market by a lot for at least the next 2 quarters…

Rob currently owns no shares in MIDD and Mike currently owns shares in MIDD..Rob would possibly like to own shares in MIDD in the near future…There is NO One best way to invest money So please do your own independent research before you make an investment purchase..See our disclaimer.

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