Best Industrial Disributor Companies To Invest In Right Now

Best Industrial Disributor Companies To Invest In Right Now: ADDvantage Technologies Group Inc.(AEY)

ADDvantage Technologies Group, Inc., through its subsidiaries, distributes and services a range of electronics and hardware products for the cable television industry. The company provides new, surplus-new, and refurbished products in various brands, including Cisco, Motorola and Arris Solutions for use in connection with video, telephone and internet data signals. It offers headend products, including digital and analog satellite receivers, integrated receiver/decoders, demodulators, modulators, antennas and antenna mounts, amplifiers, equalizers, and processors for signal acquisition, processing, and manipulation for further transmission; fiber products comprising optical transmitters, fiber-optic cable, receivers, couplers, splitters, and compatible accessories for transmitting the output of cable system headend to virus locations using fiber-optic cables; and access and transport products, such as transmitters, receivers, line extenders, broadband amplifiers, direction al taps and splitters for use in permiting signals to travel from the headend to their destination in a home, apartment, hotel room, office or other terminal location. The company also provides customer premise equipment consisting of digital converter boxes and modems to receive, record, and transmit video, data, and telephony signals; and hardware equipment, such as test equipment, connector, and cable products. In addition, it offers Fujitsu Frontech North America encoders, decoders, and other media solutions products primarily for use in the broadcast industry. The company markets and sells its products to franchise and private MSOs, telephone companies, system contractors, and other resellers primarily in the United States, Canada, Central America, Mexico, and rest of South America. ADDvantage Technologies Group, Inc.was founded in 1989 and is based in Broken Arrow, Oklahoma.

Advisors' Opinion:

[By Geoff Gannon] el about how those companies use working capital has a lot to do with whether or not you like those stocks long-term.

Then there are companies that have increased working capital very, very fast over the last decade or so but theyve also increased sales at a startling clip.

Thats Carbo.

Lets look at where the difference between EBITDA and operating cash flow is coming from.

Cash flow from others as shown on GuruFocuss 10-year financials page for Carbo Ill use this as a proxy for working capital changes was positive in only two years. And not by much. Usually, its been negative. Over the 10 years, that single line has added up to a negative $173 million. Wow.

Okay. Then theres the difference between free cash flow and owner earnings. Owner earnings as youll remember is Warren Buffetts calculation of what a business could pay out to owners in cash at the end of the year if it stopped growing. But didnt shrink. More on that later. For now, lets look at the difference between Carbos depreciation and Carbos spending on property, plant and equipment.

Over the last 10 years, cap-ex has been: $546 million (or $425 million if you allow cap-ex to provide cash flow in certain years, this is a weird issue I dont want to touch right now)

And over the last 10 years, depreciation has been: $201.52 million

Thats a big gap. Weve got some combination of Carbo underreporting economic depreciation by anywhere from $225 million to $350 million or so or weve got Carbo investing something like $225 million to $350 million in growth.

Which is it?

Lets check the growth angle first.

Over the last 10 years, Carbo has grown total sales by just under 18% a year. Now, I happen to know their new product development record had not been so hot during the 1990s or earlier part of the 2000s. For about 15 years they spent on R&D without launch ing a single successf

source from Top Penny! Stocks F! or 2015:http://www.seekpennystocks.com/best-industrial-disributor-companies-to-invest-in-right-now-2.html