Rachesky and Snow now have to be sitting on $8 of losses/share. With no good industry news on the horizon, hard to see how this stock gets off the floor before the 3Q results are released.
QUINCY, Ill., Sept. 14, 2015 /PRNewswire/ -- The Board of Directors of Titan International, Inc. (TWI) has approved a quarterly cash dividend of $.005 (one half cent) per common share for the third quarter of 2015. The cash dividend is payable Thursday, October 15, 2015, to stockholders of record on Wednesday, September 30, 2015.
Very surprised that TWI has not pushed up from the $7 floor. This may be the new normal as revenue continutes to decline y/y. Cannot be good for Rachesky and Snow that bought in much higher looking for a good turn-up with a few changes. They may need to adjust their ideas or get out. NAV seems to be suffering same fate.
TWI is going to have headwinds for a long-time. By the time the ag industry comes back (2017 with current commodity price projections) look for the overseas competition to take advantage of TWI on the tire side. Mitas, Trelleborg, Alliance (which keep getting better and gaining OE acceptance) and probably others have great upside potential. The wheel industry side is moving to low cost manufacturing sites which will put more pressure on the US/Europe margins. The wild card is the reclamation project which seems to keep being delayed. Good potential as a stand alone if it works, but many others have tried this and failed. You never hear about the undercarriage business anymore and this makes up 15% of the revenue? Sorry to be a bear on this.....
"Following shareholder meeting, further loss and six poor quarters, Rashesky and Snow appear to be having little impact."
Seriously? Little impact? I saw Gross profit up to $51.1 million, Income from Operations up to $7.5 million, and EPS of $.02 per share. I saw a major reduction in expenses. This follows on a major shake-up in management team. Or are you expecting Rachesky and company to override global trends in tires and currencies?
Sentiment: Strong Buy
Following shareholder meeting, further loss and six poor quarters, Rashesky and Snow appear to be having little impact. There are unanswered questions from past earnings calls. Leadership - Who is responsible? Team that built Titan retired. Current president and CFO have posted losses. Reclamation machine - Does this work? Chairman's brother is developing? LSW tires - What is the forecast? Tire is easily copied. Mining tires - Are problems with this corrected? Strong Dollar - What is the impact? Off shore product is more attractive. Responsible BOD - How can a board approve compensation, planes, guest house and boat for this management group? If Q2 is weak, shareholders need answers.
So for the last couple of months the analysts have been trying to set a price target around 12.50+. Now the first of probably many are rating TWI not as highly a couple of weeks before the 2Q release. Interesting since the stock shed 5% today.