- Miller Industries was hurt by bad weather, COVID-19, and the implementation of its ERP system in Q1. Investors correctly ignored this blip.
- The ERP system adds to Miller's already impressive moat. The firm has strong scale, high innovation, trusted brands, and a dedicated distributor network.
- Results in the rest of the year will be strong. The backlog is in good shape & end market demand is high. Foreign sales should rebound as the pandemic ends.
- Miller's stock has an inconsistent correlation with the ISM manufacturing PMI. I wouldn't sell it because the PMI might fall.
- Miller will benefit from whatever infrastructure plan is passed. It just needs one to pass.
For further details see:
Temporary Blip For Miller Industries: Keep Buying This Compounder