Twin Disc Inc. (TWIN) : NEAA Venture Research Update 10.26.11

NEAA
Venture Research Staff 10.26.11

NEAA Venture Research has released an update on Twin Disc Inc. (TWIN : NASDAQ)  this morning after yesterday’s quaterly results were released.  The update manintains the Strong Buy rating that Analyst Clay Mahaffey placed on the stock before the market opened on Tuesday October, 25, 2011. The initial report and the follow on update may be accessed by signing up at www.neaaventure.com .

Mr. Mahaffey summarized the developments in the stock:

The recent quarter performance indicates that pump sales to O&G drillers continues at very high rates.  In addition they have a 6-7 month backlog on delivery of their lead product, the 8500 Series.  This supports the higher gross margins.

The base business is healthy and recovering slowly.  They have a new product that is rolling out in the next few months. Capital expenses are well within their financial capability.  They have a partnership with Caterpillar in the marine segment that bodes well over the 2-3 year frame.  Consequently the short and long term outlook is very good.  The company has little research following and the leverage to hydraulic fracturing may not be appreciated.

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