The above chart demonstrates how Equities Research llc SEEKS ALPHA!
(chart source: www.bigcharts.com)
After Titan Machinery reported disappointing Fiscal Year 2014 annual financials on April 10,2014, shares went on a three day tear and traded up from $16 to $20.40.
In less than 5 months since hitting the 52 week high of $20.40 on April 14,2014, shares are now down 40%, closing yesterday @ $12.44. The S&P500 index is up 9% over the same period. (1830 to 1997).
Management of Titan can blame price of corn, the weak construction & agricultural economy, poor farming, the unrest with their footprint in the UKRAINE, but I blame The company's poor financial condition on GREED AND RELATED PARTY TRANSACTIONS
Equities Research remains bearish Titan heading into the company's 2nd quarter earnings release scheduled to be reported pre-market next Tuesday.
- On June Q1 conference call Chairman gave guidance: "expect our Ag same-store sales to be negative 10% to 15%".
- Investment Banking firm William Blair has Titan rated a Sell (under perform). William Blair covers 98 stocks and Titan is its only SELL rating.
- Titan Machinery's $150 million Convertible Bond traded at an all time last week @ $77.50 yielding 9.78%.
- YEAR over Year Earnings are down (-79%) .
- Trailing Twelve Months ending April 30,2014 Net Income : $5.07 million. At current $250 million market capitalization, shares are trading at a Price to Earnings Multiple of 60.
- Other Q1 2015 CC Highlights:
- Agriculture Adjusted Pre-Tax Income Declined 50% in FY2015 Q1 vs FY2014Q
- "Used Equipment Prices Under Pressure due to Higher Industry Levels of Used Equipment"
- Q1 equipment margins declines. Gross profit margin was 16.3% in the Q1 fiscal 2015, compared to 16.7% in the first quarterQ1 last yr
- inventory level was $1.12 bil as of April 30, 2014, compared to $1.08 billion as of January 31, 2014.Floorplan interest exp $4.6 mil
- FY15 Q1 Operational Cash FLow : (Negative $54 mil) vs (Neg $6 mil) in FY14 Q1. operational cash flow per share NEG ($2.44) per share
my former twitter handle was @GFNNSTOCK
This guy makes a serious case that this company is, umm, furry. (@gfnnstock)newsgrade.blogspot.com/2013/04/titan-…
— Roddy Boyd (@BoydRoddy) April 28, 2013
I've got to hand it to $GFFNStock (Tom Renna): He's been warning on $TITN for quite awhile http://t.co/Fso3e4laAg Also not a fan of $SSYS
— Herb Greenberg (@herbgreenberg) May 24, 2013