It's been a rough year for most companies that have much to do with the agriculture, earthmoving, or mining vehicle industries. Deere (DE) is up a little, Caterpillar (CAT) is down a little, Joy Global (JOY) is down a little more and the two Titans (Titan Machinery (TITN) and Titan International (TWI)) are down even more. Although AGCO (AGCO) and CNH Global (CNH)
are up pretty strongly over the past year, they're more the exception
and perhaps benefiting from less reliance on North America.
In any
case, Titan International is the stock I'm interested in for this
article. This company has had an up-and-down history, with management
having something of a history of "I confess … it's not our fault!"
excuses for operational issues, but also a cogent plan for building
strong share in a variety of growth markets like Eastern Europe and
Brazil. Calling a bottom in a stock always runs the risk of making you
look stupid later on, and I do see risks that the ag and mining markets
could get worse. Even so, unless Titan seriously drops the ball and
actually loses share over the coming decade, I think the shares are
undervalued today.
Read the full article here:
Is Titan Bottoming Out?
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