Comments on: Hurco’s Combination of Quality and Value http://www.rationalwalk.com/?p=1043 Intelligent Investing is not a "Random Walk" Tue, 07 Sep 2010 21:28:43 +0000 hourly 1 By: Gladlodaemume http://www.rationalwalk.com/?p=1043&cpage=1#comment-163 Gladlodaemume Sun, 26 Apr 2009 23:41:16 +0000 http://www.rationalwalk.com/?p=1043#comment-163 great domain name for blog like this))) ------------------------ ad: http://xabul.ru/ great domain name for blog like this)))
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]]> By: Ravi Nagarajan http://www.rationalwalk.com/?p=1043&cpage=1#comment-146 Ravi Nagarajan Tue, 21 Apr 2009 00:57:42 +0000 http://www.rationalwalk.com/?p=1043#comment-146 One additional point on Hurco that I did not catch in my initial analysis. One of the readers pointed out that Hurco's warranty provision in Q1 was $57K compared to $669K in the prior year's quarter. However, charges against the accrual in Q1 was $434K. I am assuming that part of the drop in the warranty provision for fiscal Q1 2009 is due to the steep decline in sales (less units sold, less provisions required). However, that does not appear to explain it entirely. Perhaps there was some changes in product mix or other variables that led to the smaller provision, but a skeptical eye is needed in such situations. I've contacted the company to see if I can get some additional insight into this given that a larger provision could have shifted net income from a small positive number to a small negative number for the quarter. I'm not saying that there is earnings management going on here and I do not think that this matter really changes the investment case but thought I would comment on this since I missed the issue in my original analysis. I will post an update if and when I hear back from management. Ravi One additional point on Hurco that I did not catch in my initial analysis. One of the readers pointed out that Hurco’s warranty provision in Q1 was $57K compared to $669K in the prior year’s quarter. However, charges against the accrual in Q1 was $434K. I am assuming that part of the drop in the warranty provision for fiscal Q1 2009 is due to the steep decline in sales (less units sold, less provisions required). However, that does not appear to explain it entirely. Perhaps there was some changes in product mix or other variables that led to the smaller provision, but a skeptical eye is needed in such situations. I’ve contacted the company to see if I can get some additional insight into this given that a larger provision could have shifted net income from a small positive number to a small negative number for the quarter.

I’m not saying that there is earnings management going on here and I do not think that this matter really changes the investment case but thought I would comment on this since I missed the issue in my original analysis. I will post an update if and when I hear back from management.

Ravi

]]> By: TheTradingReport » Blog Archive » Hurco Companies, Inc. ’s Combination of Quality and Value http://www.rationalwalk.com/?p=1043&cpage=1#comment-136 TheTradingReport » Blog Archive » Hurco Companies, Inc. ’s Combination of Quality and Value Sat, 18 Apr 2009 05:27:48 +0000 http://www.rationalwalk.com/?p=1043#comment-136 [...] Nagarajan www.rationalwalk.com[/b]Article syndicated from GuruFocus.com, go to GuruFocus for Warren Buffett’s recent stock [...] [...] Nagarajan http://www.rationalwalk.com/bArticle syndicated from GuruFocus.com, go to GuruFocus for Warren Buffett’s recent stock [...]

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