Posted on March 11, 2021
Middleby Corp. (NASDAQ:MIDD) makes food prep machinery for the restaurant business.
You’ll recall that restaurants have been closed (and going bankrupt) across broad swaths of the planet for the last year. But that hasn’t stopped the stock of this tool and dye outfit from quadrupling – with the help of massive downward earnings revisions, of course.
We think so.
In fact, we’re so unimpressed with MIDD shares that we’ve decided to slash her middle “B” grading and designate her an outright failure.
Consider, first, the fundamentals –
All of which is bad enough… without an alleged pandemic sweeping the world, shutting down eateries left and right and making paranoid distance-lovers of us all.
The company facing a debt issue, as well. If the restaurant business doesn’t make a robust recovery, all the discounting in the current stock price will likely collapse. Middleby will struggle just to pay off its debt.
And may the G-d of Israel be with you.
Many happy returns,