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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (64067)	5/24/2020 7:59:26 AM
From: Spekulatius	Read Replies (1) of 78715

re HY. - I recall this outfit. I think at some point it was spun off from Nacho? Anyways, the company seem cheap as far as P/S ratio is concerned, but the business just sucks. Gross margins are just ~15% and is hard to make a living with that. They apparently still produce a lot of ICE based forklift equipment which is on the way out and they own some hydrogen based tech (money losing) which I think will meet the same destiny. A big competitor is German Jungheinrich and their gross maligns are roughly 24% and profit margins are of course higher too. They bet on Lithium ion tech and if you look a the world around you, it just makes sense. I don’t know the gross margins of TER much smaller autonomous forklifts, but it is likely much higher. You may get a bounce out of HY, but it looks like a secular loser to me and I think their future looks pretty much like their past.

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