Manitex's Orders Need To Be Watched, But Progress Is Evident

Manitex (MNTX) shares have inarguably been weak since my last update on this manufacturer of mobile cranes, as the shares are down about 30% and have underperformed a generally weak sector (Terex (TEX), Manitowoc (MTW), and Palfinger (OTCPK:PLFRY) are all down about 15% to 25% over the last three months). Some of that has to be the broader weakness in the market as well as growing concerns about the heavy equipment cycle, and I didn't think that Manitex was particularly cheap when I last wrote about it.

Still, I think Manitex has made a lot of progress, and although I can't dismiss the risk that the cycle is ready to roll over, I believe Manitex's margin structure and balance sheet are in much better shape now. What's more, while a roll-over in heavy equipment demand would be inarguably bad, I still like the long-term growth story of Manitex gaining share with its knuckle-boom offerings in North America in the coming years and leveraging its still-new partnership with Tadano.

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Manitex's Orders Need To Be Watched, But Progress Is Evident