I, too, am impressed by management's balance sheet cleanup over the last few years. I also like that they're bringing new products to market more quickly and more cheaply, working to enter foreign markets, and strengthening their dealer network. Annual reports are puff pieces, but Gehl's latest one is positive, even adjusting for the expected sugarcoating.
The economy seems likely to stay strong in the near term, so I expect the factors Deere noted to help Gehl, at least by comparison to previous expectations. I find it harder to predict the weather or food prices, but as I see it, people have to eat.
My current concern is the shareholder rights plan recently adopted. Generally, I don't like them, but I haven't looked at theirs closely yet. If we're extremely lucky, they're worried that their stock price is unfairly low, not just about control and job security. |
