“Cascade Corp. (CASC) [is] one of the world’s leading manufacturers of materials handling load engagement devices and related replacement parts, primarily for the lift truck industry and to a lesser extent the construction industry. ... Why I Like It: CASC has been seeing growth in earnings and revenue as orders continue to pile into construction, mining, agricultural and industrial vehicles. Revenue jumped 40% in the first quarter as compared to the previous quarter last year.
“Gross profits also have surged higher—more than 60%—and net income improved a staggering 190% over the same time last year. CASC is attractively priced at 9x forward earnings. And the cherry on the cake is the 1.7% dividend. I can’t promise that this company will be immune from the next recession, but it is selling at an attractive price and the company continues to grow. Projection: According to my numbers, CASC should be selling in the $100 range. It is currently trading around $50, so CASC has large upside potential. Place a sell stop at 25% below your entry price. As the stock rises, continue to raise your stop so that you are trailing the Friday close by 25%.”
Dennis Slothower, Stealth Stocks, 7/11
