United Rentals, Inc. (NYSE:URI)

High P/E, High PEG and High P/B.

Sabrient

Scottrade momo, p/s<1, (1of23).

Their customer base is going to face a horrible recession

Bought on the dip. Should continue growth.

below book, construction and industrial rentals

S&P 5 star strong buy - no div

low to negative revenue growth continues

Poor fundamentals.

When housing and construction pick up contractors will need to rent equipment.

Construction market is coming back and more homeowners are tackling their own projects instead of hiring contractors.

This company should do well under a recovering economy with assist for infrastructure projects by the Federal government.

Shoutout to Berkowitz

This stock was grossly undervalued a month ago but has been creeping up. I bought on March 9th for $3.04 and have already made a reasonable profit. This company tends to have a boom and bust cycle which follows the construction economy. I bought this in 2002 for about $5 and sold in 2007 for about $33. It is a good company that is the leader in its field but is beat up by macro conditions. They have closed a number of under-performing stores and bought back shares so that now there are only sixty million outstanding. The economy will eventually recover and URI will be well positioned to take advantage. Sure the company isn't very profitable at this exact moment but if you are a buy and hold value investor as I am, you can make a lot riding this company up over the next five to seven years.

Estimated free cash flow of 2$ per share for 2009 according to value investor Bruce Berkowitz.

If this trun out to be true, then this stock is selling at only 2.5 times cash flow.

Who wouldn't like to be able to purchase a business at this price level?

Solid management and planning for upcoming rough years conservatively, they do have lots of debt, but their assets can be liquified fairly quickly if needed...debt not due till 2012 though.

Balance sheet from last year took large losses on new equipment purchases that hurt it's earnings report. 2009 and beyond will output better numbers and the Obama stimulus package should increase demand for their rental units with new construction.

When the bosses wake up that run this company they will figure out their job is to make a return for the shareholder. You know the people that own the company but have no say in it. In the rental business the way to do that is to run a well maintained fleet with a few years on the equipment. The profit is keeping equipment in good shape past the depreciation period. Age that fleet. Using your buying power not to sell equipment cheap, but to buy it cheap and rent it. You make 10-15% selling it new and should be making 40% selling it used.

rental