$9.33
-0.12 (-1.27%)
Manitowoc Company, Inc. (MTW)
CAPS Rating:
The Company is a diversified, multi-industry manufacturer of engineered capital goods and support services for selected market segments, which includes Cranes and Related Products, Foodservice Equipment, and Marine.
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it's funny how many people will get upset that a company like this has a stock price trading where it is. I would think the proper thing to do, is smile ear-to-ear, and buy large quantities at an obscene price. This is a great company, that sold a great part of their business to pick up an even larger cash cow. when the dust settles, these guys will have solid returns, and a higher stock price.
Do you feel one should take any profit for re-investment on the down turn early in this quarter. Or sit on it and watch the activities for a few weeks? Thinking the stock will sit and bouce off or around 10.00 until the next quarter end..
I think you should do whatever makes you comfortable. I don't think i'm smart enough to give sound advice on what to do with your money.
well im jst looking for some other points of view.. I am pretty big on watching mad money and knw what cramers books teach, he would say to take profits and the debt would keep him from being back . But i just think the reward out ways the risk of the cheap position, for now anyway. In this situation it seems you would loses much more giving up the cheap position, with the high short term tax rate. . Unless you got back in at a good position
Personally, I don't care for Cramer. I buy stocks (companies) by asking myself very basic questions: If I won the lotto for the exact dollar amount (or simply just had the exact dollar amount in the bank), and could buy this company out-right, which would I rather have; the company, or the cash? The same goes for when to sell. If I could sell the company and get the cash, would I rather have the cash, or the company? I assume that I can only buy 1 company, because I only have the money to buy 1, and I can never replenish my funds with anything other than the company I bought... in other words, it will be the only company I can buy for my entire life. I'm only allowed 1, would this company be it?I ask these questions only after I look into the financials. As far as stock prices, they really only mean buying opportunities to me. I see a stock price tank, and I get excited that I can pick up more shares at a cheaper price. I see it go up, and I wonder if it's over-priced and time to sell. I read a lot of Ben graham and Buffett-type books. I find those much more eye-opening than any Cramer show. I'm not about a trade or a quick buck. I try to find places to put my money that return much higher than a bank, and offer just about the same level of "margin of safety". I just don't have the money to build large positions in every company that is a good deal out there. I stick to 3-4 companies that I really like, and I build large positions every time the price dips low enough for me to grab what I feel comfortable buying. I'll hold it forever, if the prices don't become so absurdly high that I would rather have the cash. The best possible advice is to buy indexes and cost-average monthly. It’s really hard to determine if you've done enough homework on a company to find out its true value. You can end up making a costly mistake and would have been better off just buying an index. The S&P has been on a tear, so an index fund would have been good these past couple of months. Probably better than MTW if you had bought at the wrong time, if you're basing on the short-term. I try to talk to people who work for, or use the products, or know of the company to see what the reputation is like and find out what they're doing in their markets. Then I look at all the other companies they compete against and see if they are stronger than or weaker than those. I do a lot of reading and home work on the company and look at their financials. I bought a few books on how to read financial statements and interpret the results, and I’ve taken a lot of accounting and finance classes on how to break down the numbers because it interests me. so I try to find out what's really going on in the company. sometimes high debt is normal for an industry (albeit not exciting and doesn't impress me, i prefer no debt), but sometimes it's normal. Cranes and heavy equipment have huge expenses to build the product and to sell it. inventories pile up during these down-turns. these are the kinds of companies Buffett would most likely steer away from. But i happen to like MTW and know some people that use or repair or come in contact with the products. they all say they make the best cranes hands down. And that's only 1 part of what they do. for me there is so much more than just taking profits when it jumps up. Sometimes, i hold a stock too long, and i miss the signs that i should get out. But sometimes, when it dips down and you feel like you made a mistake, you can buy even more and it ends up putting you in a better position. I find that patience is the hardest part about investing, which is why I act like it may be the only company for my entire life that I can buy. it forces me to do homework and be patient.if you're looking to take profits and make some money quickly or hedge against down turns, options are often a really good play for that. You may already know about options, but it sounds like you can accomplish both of your desires (holding the stock, and selling to take profits) if you consider an options strategy that works for you. Personally, I am not comfortable with options (yet). I still have more reading and practicing virtually to do before I give it a go. But I have read some great articles that explain how to use options smartly to effectively "take profits" without selling your long-term holdings. Just something to think about.i like these places like CAPS, and virtual areas to purchase, becasue it gives me a chance to try out some companies i wouldn't normally buy with my own money. I actually do own MTW. Not much, but i just started buying it last year when it was around $25. at that time, i probably didn't do enough work to know that the company would be over-valued and i should have waited. My judgement from the homework was telling me the company was worth more. But who knew it was going to get into the $2 range? It certainly was worth more than that, even though its hard to pin a value because so much keeps happening. you can't predict what's going to happen, so you just have to trust your own judgement. in this case, i held it all the way down, bought a lot more at an extrememly low price, and now my cost basis is single digit. Sure, it was painful in the beginning, but everything was, and no one could have known how bad is was going to get, or may still get in the future. all we know, is that it will continue to go up, and it will continue to go down. it happens. Use the downs to get in really low, and use the ups to get out if you think the cash is worth more. don't try to pick the bottom, because you'll probably be wrong every time. just worry about what you think is right. Use Cramer, Buffett, Icahn, whomever you like as a guideline and another point of view. But Jim Cramer, Buffett, Icahn... these guys don't get affected if you lose money. only you do.
humble solid advice (on both your replies).. i rec'd you
Thank you. Much appreciated.
Good post and genuine advice. Thanks for your efforts.
I show this as a pick, but it was actually an accident. Based on your posting I wanted to put it on my watch list, but not paying attention placed it in my pick column. The reason I wanted to watch it was because of the previously high price it was selling at, but with a debt to worth ration of about 9 to 1, could not see how they could possibly go up for a long time. In fact, was a bit concerned that they would be able to even stay in business. Now that they were able to amend their credit agreements with their banks, they have some breathing room, but still don't see how such a highly leveraged company will come close to it's former glory. Am I missing something obvious here, or is this just hoping and wishing?
First, at $50 a share i fully believe they were overpriced. I just want to get that out in the open. I also believe that at Sub $3 a share, they are undervalued.
You're right; according to the companies reports, they too have no reason to believe that things will get any better until maybe (I stress that maybe) after 2010. It appears that they are projecting 4Q 2009 and 1Q 2010 to be the worst for EPS. That said, with the debt they have from both being in their business (capital equipment, in this painful economy) and the purchase of Enodis, I think it's safe to think that the stock may not go anywhere for a few years. But they are projecting EPS to triple (back to where it should be) by 2013 once they get a handle on integrating the new business, and figuring out how to crank that new cash machine, and some finger crossing that the economy picks back up (huge wish and hope there, no know has any clue on that).
if you haven't visited the website yet, i stongly suggest just taking a look at their portfolio of companies/brands they own. If you have already, then you know they own over 20, highly specialized in two segments; cranes and foodservice. They own their respective markets.
I believe in buying when the company is cheap, and selling when the company is expensive. i can wait for that, too. The fact that the stock price has slid from almost 7 to almost under 5 doesn't bother me. I am currently crossing my fingers that it goes back down into the $2 range again. I wouldn't mind tripling my earnings by 2013 either.
Also, when i put my pick for MTW up on Fool, they didn't allow for limit orders. Now that there are limits... set it and forget it like Ron Popeil.
MTW at $2.52.... That's where i got in. Up 116%, Up 80% over the S&P. Good Call!
Good post. I agree on MTW. I don't see them going bankrupt, and there should eventually be a huge upside. It'll just take some patience to get there.
On Cramer, I watch him because he's entertaining and I think he does a pretty good job of explaining technical aspects of the market. I just don't give much weight to his individual stock selections because I'm following a more long-term strategy than he does.
This blog strikes me as informative and unusually sensible. Thankyou Drew and others. I'm pretty young and have curiously started following and investing in stocks, the last 3 years.
Good stuff.
-Keith