yeah your revenue increase regardless if an acquisition is good or bad. Mentioning it grew at 69.2% and not providing that crucial piece of evidence makes you one of two things a) not very bright b) just here for a quick pump and dump.
MNTX made 2 dumb acquisitions to pursue growth at any cost. They took on huge amounts of debt and issued stock.
Furthermore it is extremely tiny and risky and the company should have a high discount rate. With its current earnings projections $6 seems fair value.
So you're basing it off the $925 of equity. I would think you should disregard this number completely for a resource based company especially when all their assets are based off the price of oil. PV-10 is a far better gauge
chump your god James checking in.
Where are you getting your NBV calculation?
I see these stocks are getting interesting for me to take under looksy! I have been patiently waiting this out. Though I still have a few industries to go to first.
yeah the amortization is in the line in their 10-k.
I think you should build your model by the segments and not from the top down since there is huge variability in each segment.
Are you in the ballpark in terms of valuation? or in terms of Terex's normalized earnings?
In terms of valuation I think this year 330-380 would be a fair estimate for 2014 free cash flow pre-tax but if I were you I would think about it after-tax since tax is a real expense. Also you may have done this but ensure you also add back amortization since MHPS has about 40M of that.
Not sure your comment on dividends and buybacks since that doesn't effect free cash flow. Dividends and buybacks are what you do with FCF it doesn't affect it.
Also I think Terex is a business that should have rapid growth over the next few years so I would think the growth rate you choose is more important than the base earnings. However I think the base earnings for this year is in the ballpark.
Its hard to know really. I think $130 is a fair discount to $137.5 given the risk and closing time of that transaction. The 5% discount isn't out of the realm of possibility. However I do agree that the transactions looking more likely with AXS
lol I think MTW is pretty mismanaged
1) It has 2 completely different companies it owns that it now has to split off.
2) MTW made a terrible overbid for Enodis in 2008 where the whole company is now worth 66% of the purchase price
3) MTW has a terrible financial position with over negative $1 B of tangible equity
4) MTW has huge debt relative to their earnings.
Somehow MTW is a darling of the stock market. I don't really get it.
Anyways I will be curious to see how they breakup cranes and food. I am hoping their crane division is cheap and I'd consider looking at them.
I take Terex every day of the week at 25.25 over MTW at 20
Yeah but stuff like this doesn't affect long term value. I really don't care if Terex moves up .5% on a given day.
no one disagrees with you but doing it is kind of built into any model going forward. Terex has outlined the efficiencies themselves they hope to achieve.
lol are you serious? It's a positive but very minor and don't read anything into it. Terex making smart financial decisions and optimizing interest cost and working capital is built into everyones model already.