It's always worth remembering that there is more to a stock's performance than just the reported financials. In the case of Titan Machinery (TITN),
fiscal fourth quarter results were not all that greater and there are
still real issues with the business model. Investors liked what they
heard about cost-cutting in the next year, though, and with Yahoo!
Finance showing about one-third of the float held short, it looks like a
short squeeze helped catapult the shares last week.
I saw value up to the high teens on a cash flow-basis last time
I wrote, and I still see a similar fair value after this latest
quarter. I don't like the model, though, and I think investors have
better options for playing bullish outlooks for agriculture and/or
construction equipment demand.
Continue here:
Titan Machinery Needs More Than Short Covering
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