Hardinge Inc.: Compelling Long Story With Underlying Momentum

Hardinge Inc. (HDNG) is a 123-year-old manufacturer of precision tools for industrial customers. This is one of those under-loved and unfollowed stocks that sneaks under the radar and produces superior returns over the long run. The company has exposure across the globe and is a great play on the emerging market industrial growth story.

There appears to be some core strength in the industrial growth of the emerging markets as well as Europe and the US, which are not being valued by the market presenting investors an opportunity.

Business Overview

Hardinge supplies high precision computer-controlled metal cutting turning machines (lathes), grinding machines, vertical (milling) machining centers, and accessories for those machines. The company has a reputation for building products with a high-degree of quality, accuracy, reliability, and durability.

The company has a high degree of international exposure with roughly 75% of sales outside of North America along with 80% of their 2012 products sold manufactured outside of North America. It has a large presence in Europe and a growing one in China for Asian distribution.

The products the company produces are mainly power-driven machines for cutting metal and other materials at high precision specifications. Hardinge is a leader in the field of producing machines capable of consistently and cost-effectively producing parts to very close dimensions, which are often measured in millionths of an inch.

Hardinge believes its main competitive advantage is a deep supply of human capital, which brings with it significant industry experience. The company operates out of one business segment but has several complementary product lines:

From: http://seekingalpha.com/article/1888441-hardinge-inc-compelling-long-story-with-underlying-momentum