Wednesday, May 27, 2015

What is TITAN Machinery really?

What is TITAN really?
Nothing more than the Used Equipment and Parts. Why is Used Equipment and Parts company have $300 million mkt cap?
  • They don't own property.
  • They are on hook for taxes, insurance and maintenance of land they don't own.
  • Auditing and Attorney Fees to stay public.
  • Management makes a fortune,
  • Salesman Make a Commission.
  • 2500 employees get paid.
  • New Inventory is all borrowed and they pay interest on it.
  • They owe WFC $150 big ones.
  • They owe money (debt) against their inventory.

A January 2008 IPO raising approx $60 million.

A Spring 2011 Underwriting approx $60 million.

A Spring 2012 $150 million Indenture.

 
Management (& Family) Outside Entities make all the money:
  • on leasing property to TITN.
  • sales commissions
  • underwriting fees
  • mgmt sold stock annually
  • having expenses, maintenance and fees on their outside entities properties paid by TITAN.
  • Brother-in-law generating millions of dollars worth of construction fees (questionable if its even needed)

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