Now that all the analysts are piling down on URI, is it a good level to accumulate more, or start accumulating? Probably. It has no love right now. I've been accumulating up to $92 and as low as $82. Will we see 60? Maybe. Downside is limited from here absent a total barf for the quarter. To keep URI stock price in perspective, Janus has 6% of URI, yet URI is less than 3% of their entire portfolio. Funds can really move URI, so take the stock price with about a pound of salt and use that to our advantage.
Every company has some good and some incompetent management. Now, of course, I don't know the CEO in any way, but he's been at the helm while URI gobbled up competition and also took them through the US financial crisis in 2009 and led them in the big acquisition of RSC in 2011/2012. I think track record of management is more telling than individual criticisms of some managers. In fact, if they have done this well with bad managers, I can only be excited if they improve. What is your specific observation on management, and which managers? Or is it a managerial culture issue? Those do exist and can be dangerous. I got out of CAT entirely because of some small newsworthy stories that showed me lack of integrity at relatively high levels.
Sentiment: Strong Buy
Please cite the last time that Cramer's advice was on point. I have tried but seems like he just goes with the mo mo techies. Anything with an uptrend is a buy buy buy and anything in a downtrend is a sell sell sell.
URI has a lot of debt, a low MK, and low share count, thus fodder for any shorter term hedge fund type trader. URI can move up / down 50% no problem for no reason. But, URI has scale that allows companies to get the equipment they need, where they need it, when they need it, and keep it all off the balance sheet. The bigger URI gets the better service it can offer. Lots or room to grow and a great product to sell; lower operating cost to clients. They can integrate IT and inventory systems that smaller competitors cannot dream of doing. So, short term who knows where URI goes ($60 is clearly possible), but long term, they are gonna grow a lot more. Bad times will drive competitors into weak positions so they are acquired on the cheap. A company like URI will get money as needed even with this depth level as the story is compelling. I'm accumulating here and will accumulate aggressively again near $60 if it goes there. In 5-10 years URI is going to be much much higher than it is today, more likely than not.
Going on memory from an interview on Mad Money last fall/early winter, oil industry revenues were only 6%. Minor. Long time shareholder and I have concluded that big money views URI as an oil company. Absurd, but that's how they view it. With Jana on board and overall construction activity improving, URI has to benefit. This correlation to the oil patch will fade. IMO.
The fact that URI is now higher than when the downgrade was initiated, says market is on Jana's side. And, URI is a sweet acquisition target for a large number of companies, both US and foreign.
The only info that i have been able to find was a S&P research press release in Jan 2015 that stated that URI has "limited exposure" to the oil industry. The fact that this data isn't readily available is a little unusual.
On one hand we have an unheard of company named Macquarie who downgrades URI and on the other we have a company named Jana who purchased $500,000,000.00 of URI. I go with the group who put their money where their mouth is: Jana. Jana sees URI as undervalued and Jana acted in a meaningful way, not merely talked.
Sentiment: Strong Buy
I keep hearing that it is less then 10%, but from the way the stock is acting you would think it was at least 50%. Count me as one of those who don't understand why this stock is acting like it is.