Tower International Inc (TOWR): The Details

Let’s dig into the inventory specifics. On a trailing-12-month basis, work-in-progress inventory was the fastest-growing segment, up 6.7%. On a sequential-quarter basis, raw materials inventory was the fastest-growing segment, up 18.9%. Tower International Inc (NYSE:TOWR) seems to be handling inventory well enough, but the individual segments don’t provide a clear signal. Tower International Inc (NYSE:TOWR) may display positive inventory divergence, suggesting that management sees increased demand on the horizon.

Foolish bottom line
When you’re doing your research, remember that aggregate numbers such as inventory balances often mask situations that are more complex than they appear. Even the detailed numbers don’t give us the final word. When in doubt, listen to the conference call, or contact investor relations. What at first looks like a problem may actually signal a stock that will provide great returns. And what might look hunky-dory at first glance could actually be warning you to cut your losses before the rest of the Street wises up.

The article 1 Reason to Expect Big Things from Tower International originally appeared on Fool.com is written by Seth Jayson.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned.

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