The case for United Rentals (URI) is fairly simple says, Mick McGuire of Marcato Capital. The economy is getting better, which means United Rental’s industrial and commercial real-estate construction companies will need their products. At the same time, United Rental has higher penetration and customers are paying higher rates. Put that altogether, and the stock should be trading much higher, he says.
Its purchase of RSC in 2012 is also providing a big boost. That’s because the acquisition has given the company a much larger national footprint, and those customers tend to be more profitable, more stable and return the equipment in better condition. Their customer mix has also gotten better, with the more volatile construction business now being a smaller portion.
Investors, however, are valuing the company as if it’s opportunity set is no different than in previous ones. If he is right, United Rentals could trade above $96 dollars, McGuire says, nearly 70% above its current price of $56.75.
Good discussion. Normally I wouldn't buy shares without at least some profits, but I have followed this for quite a few years and think this time may be different. I know they didn't have much choice, but it gives me confidence when they put their own money up. As mentioned before, I owned this when it was $10 per share before Spansion went belly up. Hoping for better results this time, maybe even go back to break even in a couple years. I have a lot more shares now than when it was $10. This CC will be interesting to see what they think the timelines are for potential orders, etc.
Funny, I looked up the press release and it was listed as 2012 instead of 2013. ACS couldn't even get the date right.
INDIANAPOLIS, Sept. 8, 2012 — Scientists who developed medicines and crop protection products that improve life for millions of people around the world will be inducted into a scientific “Hall of Fame” today, becoming the newest Heroes of Chemistry, an honor bestowed by the American Chemical Society (ACS), the world’s largest scientific society.
Right now the zooming share price is my Nemesis. It's back over where I lightened up at $32.50. Had planned to add back at lower levels, but never pulled the trigger. Does anyone have any thoughts about how important this new Nemesis product will be? It seems to fit well with other Aerostar product lines, but no idea what the volume might be.
Sioux Falls, SD (September 10, 2013) — Raven Aerostar (NASDAQ: RAVN), leader in the design and manufacture of specialty sewn and sealed products and surveillance technology, announced today its groundbreaking signature management product line: NEMESIS™ Garments, Personal Hides and Equipment Covers. Raven Aerostar and W.L. Gore & Associates (Gore®) have partnered together to develop multispectral camouflage and signature concealment garments, hides and covers. NEMESIS represents a breakthrough in signature concealment for warfighters and security personnel. Using GORE® Multispectral Concealment materials, NEMESIS Garments, Personal Hides and Equipment Covers are the first material technology that greatly reduces the range of detection from sophisticated radar technology and multi-spectral electro-optical/infrared (EO/IR) sensors.