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Douglas Dynamics, Inc. Message Board

  • nadsmis nadsmis Jan 4, 2012 4:39 PM Flag

    just liquidated PLOW

    hated to sell out but this winter across the whole midwest looks pretty weak. no snow. none forecasted for another week out. i like to buy good companies having a bad time thru no fault of their own. try to catch cycles too. after quarterly results are posted, earnings will be down YOY. after PLOW drops more i will buy back into it. probably not until 2012 Q4. too bad. dividends are great but they lose their value if i incur capital gains losses. gl to you...

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    • Good call, what is the price you would get back in? In the low 13's this is now looking attractive to me for a +1 year holding and getting the dividend at the same time.

      • 1 Reply to willaby
      • sold at $14.20 and bought into JRN and ASBC with proceeds. there are no dividends with them but decided capital gains would more than offset loss of very good PLOW dividends. so far, that strategy has proved sound. current P/E is too high at approx 17. I will buy back after 4th quarter earnings announced at JRN and have a year in so i can avoid short term capital gains tax. JRN to have solid earnings report thru next 4 quarters due to election year ads on newspapers, radio, and TV. i expect PLOW to show YOY earnings drop. consumers bought snow plows last year, not this year. i expect PLOW share price to drop and then expect the company to drop that high dividend to match. then, share price will plummet. at that point, i will buy back and hope for a rebound. won't be until P/E is single digit. maybe stock will be at about $7/share. sorry, but i have to rate stock as a Strong Sell. tell me your strategy, if you don't mind. good luck to you.

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