10K filed yesterday.
A 4th director is resigning as of yesterday's 10K.
Titan Machinery Founder Resigned as a director last June and receives a severance agreement package in excess of $1.5 million as of February 1,2016.
Titan sales have declined dramatically and losses are growing.
This is no longer a growth story and should not be trading at a multiple.
On January 31,2015 Company had $127 million cash.
January 31,2016 cash position was $89 million.
In April 2016 company spent $25 million on a debt payment reducing their cash position to less than $66 million.
Titan has an outstanding note of $150 million with Wells Fargo due 2019.
Discosure in 10K reveals that CNH is changing their agreements with their outside dealers.
If CNH Industrial were to change the terms of our dealer agreements or its operating practices in a manner that adversely affects us, our business would be harmed.
CNH has recently proposed a new format of its dealer agreement, to be applicable to all North American dealers. We have not commenced our negotiations with CNH in response to the proposed new agreement. We anticipate this process to commence within the next few weeks and be concluded in our second quarter of fiscal 2017.
Sentiment: Strong Sell
I agree. I just think UA may be fully priced giving limited upside at these levels. thanks for reply.
Is Under Armour Over Valued or is Adidas Undervalued?
Adidas pays a dividend. Adidas owns Reebok and Taylor.
Adidas has higher sales and trades at approx 1X sales.
Under Armour trades at 3 X sales.
$150 million convertible Wells Fargo (2019) $63.61 yield 18.56%
FY2016 Q3 number comes out Thursday pre market. Fy2015 Q3 company net income was $2.4 million.
desperate attempt to probably prevent margin calls. Also keep in mind the high speculation on long side who are holding call options that expire in less than 72 hours that are at risk of being wiped out. More than meets the eye here. good catch on the AH painting
Sentiment: Strong Sell
FY2016 Q1 + Q2 (6months)
$229 Million Decline in Sales (Down 25%) . 6 months Revenue FY2016 $687 million down from 6 months Revenue FY2015 $916 million.
6 months EPS loss ($0.29) , net income loss ($6,186,000) vs FY2015 6 months EPS loss ($0.31) , net income loss ($7,049,000)
From July 31,2013 to July 31,2015 Total Stockholder Equity has declined by $34 million
From January 31,2015 to July 31,2015 Balance Sheet : Customer Deposits has declined from $35 million to $15 million. 57% decline
From January 31,2015 to July 31,2015 Balance Sheet : Cash has declined from $127 million to $95 million. 25% decline
This is no longer a growth company. The company should not trade a fwd PE of more than 10. It trades meanwhile at a PE of 175
Zacks ranks Titan Machinery Highest EBITDA to Debt Ratio
:"Typically, this ratio is considered to be alarming when it
is greater than 3.0 but this can vary and should be looked at
within the context of the industry.Titan Machinery
(NASDAQ:TITN) is highest with a debt to EBITDA ratio of
From Morningstar: 6 of top 10 Institutions reduced their positions from April 1,2015 to June 30,2015.