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No. of Recommendations: 1
HWCC seems most promising to me

I vote for HWCC also. It seems like a really great business although one that could very well have seen it's cyclical peak in 2006. It will be able to weather a recession better than most but will no doubt be affected. You may be able to buy this cheaper when and if that recession hits but for a long term purchase, or a short term one if the US economy stays strong for another 12 months or so, this looks like a good choice.

Besides the recessionary risk, I have a couple other concerns. First the high growth they experienced in 2006 may be stretching their processes a little thin. They have many new issues to deal with being newly public and growing their revenue that much without a corresponding increase in people, plant and systems. My second concern is they seem terribly occupied with pleasing Wallstreet. They went to great lengths on their last earnings call to explain every penny of EPS that should be or shouldn't be included in the year over year comparisons and why it all boils down to them being a growth company rather than a cyclical one. They are what they are and I would rather see them concerned about managing their long term health than their short term image.

Thanks for posting your candidates and process.

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