According to the news release today, Terex posted 65 cents per share versus the 56 cents estimate (average of two analysts). These are blowout earnings, but the stock had trouble climbing in an overall bad market.
I have followed this stock for about six years and first bought it at 4. The reason for the turnaround is outstanding management, Ron DeFeo and colleagues. They've paid down debt and refocused the company on a few profitable lines. This stock still has ample room to run.
mgt & ownership change a while back, new ceo. --co. has seen this kind of cycle severals years back. --capital goods cycle, big machinery etc. --also run a comp of tex chart vs. cat over last year, maybe more. similar fundamentals. --co. has financial leverage going for it so when it turns positive above the line profits get leveraged effect. --I think a small circle follows this. --but still has risk of small co. and cap goods/inv cycle. --i suspect recent setback was connected to asia, where I think they sell some machinery, but not sure.
if you do any more research and find anything, pls let me know.
talked to terex investors' rep. he said that earnings estimates of $1.57 for 1997 and $2.50 for 1998 were on target with the possibility or buying a German company 1st quarter of 1998 taking the '98 earnings to about $3.00