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Clear Pointers to Increased Business for Products of Arts-Way Manufacturing Company Inc. (ARTW)

Simplicity can be a source of business strength, because it allows the management to concentrate on a few things, which it does better than the competition. This is the stock investment lesson from this company which merely makes life simpler for dairy farmers. Convenience is the hallmark of this company’s patented designs for portable farm equipment. The equipment makes it simple to prepare feed and to give animals easily measured quantities of food. The company also fabricates temporary shelters of custom sizes as holding areas for animals.

The company has achieved a sharp increase in profitability at the end of the August 2007 quarter compared to the full 2006 year. The strong demand for hygienic meat points to this positive trend in earnings to continue. This vintage company from the heartland of Iowa seems set for a future as strong as its excellent business record over more than five decades. It has diversified in to pressure tanks and specialized containers for laboratory animals, which is a value-added extension of its core know-how.

The company does business both under its own brand, and as an Other Equipment Manufacturer (OEM) for its industry. It uses raw materials that are easily available, so investors can look forward to stable stock value. The company has a vibrant after-sales service and spare parts business, which gives it continuing opportunities to bond securely with key customers.

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