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Non-Tech : Gehl Company
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To: Marz who wrote (50)6/25/1998 5:39:00 PM
From: Michael Bakunin   of 97
 
I liked that part of the report, too, and it fits in with my take on the acquisition. I read somwehere that Mustang did some channel stuffing, which would have compounded the inventory Gehl had to work off (Gehl likes lower dealer inventory and stronger dealer networks, which model I assumed they would apply to Mustang, too).

The best news of this calendar year, to me, is the strength of the agriculture segment. Gehl had been making all their money in construction; if they can improve their lagging farm equipment business, it would diversify earnings somewhat.

The bad news remains DE and CAT competition. No matter how few units they plan at first, companies like that aim for market share.

Given that and risk of economic slowdown, I don't think Gehl's cheap right now, but I'm happy holding some as long as they perform.

mb
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