K-Tron International (NASDAQ: KTII) designs
and produces material handling equipment and systems for a variety of industrial markets. Principal products include feeders, mass flow meters, pneumatic conveying equipment and pressure systems. The company also sells hammer mills, wood hogs and double roll crushers, used in the electric utility, mining, and forest products industries. Subsidiary K-Tron Electronics produces electronic assemblies and controller hardware.
The firm pleased investors last week, when it said its fourth quarter profit climbed 40%. Earnings rose to $2.18 per share, compared with $1.57 per share, in the prior-year period. Quarterly sales grew 33% to $59.1 million. Annual net income soared 65% to $21.3 million and full-year revenue increased 36% to $201.7 million.
The news
kept KTII shares cycling through a positive six-week trading channel, which is steadily carrying the price into fresh all-time high territory. The KTII P/E ratio (16.17), Price to Sales ratio (1.62), Sales Growth rate (33.11%) and EPS Growth rate (40.00%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 52% of the outstanding shares. Over the past 52 weeks, the stock has traded between $70.52 and $124.66. A stop-loss of $103.75 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.
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