Wednesday, May 27, 2015

What is TITAN Machinery really?

What is TITAN really?
Nothing more than the Used Equipment and Parts that are carried on their books at inflated levels.. 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. 

January 2011 2.4 Million Shares @ $28.75 

A Spring 2011 Underwriting approx $60 million.

November 20011 500,000 @ $21.68 

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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