Alamo Group, Inc. (ALG)
The Company is in the business of design, manufacture, distribution and service of equipment for right-of-way maintenance and agriculture.
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This account tracks the performance of newly minted 4 star stocks - 3 star stocks that recently turned in to 4 star stocks.
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Very slightly undervalued....barely.
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Low price to book ratio, near 52 week low with high insider ownership. This stock will pick up once the economy picks up.
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With this depressing economy more people will be returning to smoking.
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Both natural population growth and a gradual lelveliing of he globaal economic playing field mean increased investment in agricultural technologies, which should benefit Alimo over baoth mid and long terms. I consider this stock both a trading possiility and a long term core holding, depending on one' s investment objectives.
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This growing food shortage problem is going to get worse and since the dems are going to be taking over the White House, I'm pretty sure right now is a good time to get into anything farm related. Say hello to government aid money.
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This is a low beta, below book value stock without too much debt. It makes agricultural replacement parts so this stock could benefit from rising crop and land prices.
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P/S,P/BV,P/E better than s&p500 and DJ average, positive ROE and ROA. I want to see if this still works!
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Stock consistenly underperforms.
Pretty much absentee upper management
5 years ago the market Alamo was in had 3 competitors, today there are at least 7 competitors successful in the market.
Inconsistant performance of equipment and a poor reputation for customer service, service parts availbilty and warranty in the marketplace encourages competion.
Competitors are popping up faster then Alamo can buy them.
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Favorable risk / reward profile
for comparative analysis and other stocks with favorable risk / reward profiles, view:
http://f1.grp.yahoofs.com/v1/8EF3R4tbNvpbI1SUgN2s5cv3kn0S2YU_r6vlJpSdVxbkYnCy4Q5V4m6oAmqNU2WnbcnNCzcELTwA2y9D3n-PxA/PRV/PRV%2007.11.30.xls
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Ripe!
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