Investors are usually wise to be cautious about buying into growth stories predicated on mergers and acquisitions, but Manitex (MNTX)
looks like a different sort of story, and one that may end well for
patient investors. Eschewing more commoditized areas of the material
handling market, Manitex has built a name for itself in heavy lift boom
trucks, rough terrain cranes, and rough terrain forklifts, and is now
looking to the fast-growing intermodal market as another potential
avenue for growth.
While the company has plenty yet to prove with
respect to margins and return on capital, the risk-reward balance here
seems intriguing for more aggressive investors. I believe Manitex can
not only drive improved operating margins from greater fixed asset
turnover and utilization, but also continue to execute selective one-off
deals in attractive markets while continuing to develop products
tailored for markets with specialized needs. In short, I see this as
both a revenue growth and margin improvement that the market presently
undervalues (or may not even be aware of).
Please read more here:
Manitex: Are These The Early Days Of An Exciting Industrial Equipment Story?
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