Todd,
It is definitely priced below the current forecast and what’s reasonable. There are a lot of companies priced like this right now. There are also a lot of companies that are overpriced in my opinion. My objective is to only own the companies that have little if any debt, consistent revenues and earnings, and are still expected to outperform what they are priced to do, with a good margin.
Out of these companies, I find the ones with the most upside. MTW is just one of them. I think that there’s a lot of money being thrown around out there right now and the PE of the S&P 500 might still be too high. But, I’m all in (on the really cheap companies that meet my requirements). I just wish my time outlook was a bit longer.
Glen
From: Todd.Johnson
Sent: Monday, October 20, 2008 4:14 PM
To: gbradfo
Subject: RE: MTW
Thanks Glen,
So based on your information below, ‘MTW is priced to grow at -1.2% over the next 5 years./ Analysts have it growing anywhere from 7% to 26%’, the current price is well below the current forecast, correct? I see they declared the .02 quarterly dividend today, so that’s good news.
Todd A. Johnson