Sunday, November 05, 2006 3:03:54 AM
New stock to watch: GEHL
GEHL
Gehl Company
Alert Price: $27.61
November 4, 2006
InfinitiStocks.com issues an Insider Accumulation Alert for Gehl Company (NASDAQ GSM: GEHL), a worldwide distributor and manufacturer of compact construction equipment. On November 2, 10% owner Manitou BF S.A. purchased $1,215,446 (44,445 shares) of GEHL on the open market at $27.35 per share.
Gehl third-quarter financials released October 30 show net income climbed 65% to $8.3 million ($0.67/share), from $5.1 million ($0.47/share) a year ago, beating analyst views by $0.12. Despite a slowdown in the U.S. housing market that caused a drop in earnings for heavy equipment makers ASVI and BLT, Gehl reiterated its full year 2006 outlook, citing solid fundamentals in its global markets. Gehl expects 2006 EPS from continuing operations of $2.20 - 2.30, versus FY 2005 EPS of $1.97.
BMO Capital Markets analyst Charles Brady, who has an outperform rating on the stock, told Reuters, "The slowdown in the U.S. housing market is not having a material impact on Gehl's top line, as less than 25% of revenues are derived from the housing market." Brady also said the robust activity in commercial construction further offsets the housing slowdown.
Gehl fundamentals show reductions in manufacturing costs improved gross margin to 21.8% up from 20.6% a year ago. Current ROE is 13.0%. Compared to a forward P/E of 10.58 (versus trailing P/E of 16.68), we believe Gehl is attractively undervalued at this time. Fidelity Star Analysts estimate an annual EPS growth rate of 13.0%. InfinitiStocks further notes a recent 7% drop in short interest, to 9.15%. We feel that signs of recent covering against the large short position increase the potential to move share prices higher in coming weeks.
Sources: Fidelity, Thomson, Reuters
GEHL
Gehl Company
Alert Price: $27.61
November 4, 2006
InfinitiStocks.com issues an Insider Accumulation Alert for Gehl Company (NASDAQ GSM: GEHL), a worldwide distributor and manufacturer of compact construction equipment. On November 2, 10% owner Manitou BF S.A. purchased $1,215,446 (44,445 shares) of GEHL on the open market at $27.35 per share.
Gehl third-quarter financials released October 30 show net income climbed 65% to $8.3 million ($0.67/share), from $5.1 million ($0.47/share) a year ago, beating analyst views by $0.12. Despite a slowdown in the U.S. housing market that caused a drop in earnings for heavy equipment makers ASVI and BLT, Gehl reiterated its full year 2006 outlook, citing solid fundamentals in its global markets. Gehl expects 2006 EPS from continuing operations of $2.20 - 2.30, versus FY 2005 EPS of $1.97.
BMO Capital Markets analyst Charles Brady, who has an outperform rating on the stock, told Reuters, "The slowdown in the U.S. housing market is not having a material impact on Gehl's top line, as less than 25% of revenues are derived from the housing market." Brady also said the robust activity in commercial construction further offsets the housing slowdown.
Gehl fundamentals show reductions in manufacturing costs improved gross margin to 21.8% up from 20.6% a year ago. Current ROE is 13.0%. Compared to a forward P/E of 10.58 (versus trailing P/E of 16.68), we believe Gehl is attractively undervalued at this time. Fidelity Star Analysts estimate an annual EPS growth rate of 13.0%. InfinitiStocks further notes a recent 7% drop in short interest, to 9.15%. We feel that signs of recent covering against the large short position increase the potential to move share prices higher in coming weeks.
Sources: Fidelity, Thomson, Reuters
Good stocks are obvious. Extensive DD is how you convince yourself to buy a bad one.
>^..^<
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