CNHI. I like it as part of a dealership bet.
As I see it: These machinery/equipment manufacturers sell to authorized dealers. These dealers sometimes get unique authorization for their geographical area. Otoh, sometimes they're not the sole manufacturer's supplier in their area.
Dealers seem to have some options: rent/lease product, sell used equipment, service the equipment. Also the dealerships (the ones I'm looking at) are not captive to the particular manufacturer. Depending on contracts, the dealerships can also sell competitor products. Also ancillary equipment from other manufacturers.
The dealership model seems to offer some advantages that I like: control over a geographical area, diversity in product line, a service revenue in addition to sales; they're likely non-union vs. the manufacturing plants, etc.
Anyway, I'm going with two of these equipment suppliers which I've mentioned before: ALTG and TITN. (related: I've car dealership stocks also.)
ALTG in the material handling/construction equipment business. "In addition, the company designs and builds warehouses; and provides automated equipment installation and system integration solutions." (Maybe benefiting from growth in warehouses?) Also ALTG's in "E-mobility" with Nikola trucks and tritium chargers.
Not a lot of history to the company; I can't call the stock a value play. finance.yahoo.com
TITN's been mentioned before here. I'm still accumulating shares. What's not been said about TITN though is that it is a distributor of Case and New Holland, and that's CNHI. So, of course I'm hoping CNHI business and stock do well, and that that filters down to TITN to a noticeable extent. |
