S&P MAINTAINS STRONG BUY OPINION ON SHARES OF MANITOWOC
(Standard & Poor's)
Q3 EPS of $0.01, vs. breakeven, both adjusted, is $0.06 below our forecast. Sales were unchanged, on 8% decline in cranes and 9% gain in foodservice equipment. But we are encouraged that MTW thinks rising utilization rates, favorable dealer inventories and positive feedback at customer events likely signal higher crane demand in '11. We still see the start of a recovery in cranes and ongoing moderate gains in foodservice allowing an EPS recovery to start next year. We cut our '10 EPS estimate by $0.06 to $0.12, but still see $0.75 in '11. We keep our target price at $16.
MTW analyst recommendations
S & Poors 16 Strong Buy (5 stars)
Deutche Bank 14 Hold
Morgan Stanley 16 Overweight
Susquehanna 12 Neutral
Sterne Agee Neutral
Macquarie 11.50 Neutral
UBS 12 Neutral
Morgan Joseph 16 Buy
JP Morgan 12 Neutral
Zacks Short time strong sell ?
The Street Hold C-
S & Poors credit rating: B+, outlook stable
I like MTW, but it makes me a little nervous at the same time.
1) They have huge debt, and I don't have enough info how they want to pay it off. They switched bank loans to $600M bonds as a big success. Me, a small retail investor is asking why? Covenants? Or is it easier to swap bonds for equity than a bank loan?
2) Half of their business are cranes and according all these posts here they are not doing so great. Food equipment is growing, cranes declining, profit is about zero.
I like it about 10, but I am not paying more.
What's even worse is I can remember when this stock was up to $112.00/share, then split to $61.00, went up to $68.00 and than did it's downward slide to $2.40/share and has been struggling ever since.
I can even remember being at a stockholders meeting and Terry G. was telling us how well the company was doing and that "Very same day" he was dumping his shares. Of course he didn't pay much for them anyway. He got them from stock options @ about 1/10th the cost.
I wish I had the balls to dump all my shares, but I keep hoping someone will come along that has more concern for we share holders than themself.
I hope I don't die 1st. lol
Have you noticed that the link to the Earnings call transcript on Seeking Alpha is incorrect? Click and you will get Harsco Q3 CC.
I couldn't find the transcript for MTW. It hasn't been posted yet.
You probably already are aware of this fact but you know the saying about assuming :). Anyway, the company website has a replay of the conference call. I do not think they provide a transcript unless you request one from the company. Have a great day!