GEHL is one of ten stocks cited as "The Big Bargains in Small Companies" in
the April 12th issue of Fortune. In fact, GEHL is an interesting investment
situation. Its fundamental financial condition appears to be quite strong,
yet technically, its price has been drifting downward over the last several
months on generally light volume.
Although this may simply be the result of the current weak market for
small-cap stocks, it may also be a reflection of concerns about the
Company's first quarter earnings, which should be released during the
week of April 19th. The analyst consensus is for earnings of $0.44 per
share, only a 10% increase over the prior year quarter, but GEHL has a
track record of beating analyst projections.
Clearly, at the very least, GEHL is a stock to watch carefully over the next
two weeks, and it may be worthwhile to take a position prior to the earnings
announcement, given its strong track record of increased revenues and earnings.
GEHL designs, manufactures, distributes, sells and finances equipment used in
the light construction and the agricultural industries. However, its market
position appears to insulate it from many of the problems facing Caterpillar
(NYSE:CAT) and Deere (NYSE:DE).
As shown by this spreadsheet, GEHL has produced strong financial growth over
the last several years and has continued to grow in its current difficult
economic environment.
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
Revenues 262,219 197,055 159,662 153,452 146,620
Net Income 15,268 12,761 9,566 9,013 5,035
Diluted Earnings per Share 2.29 1.95 1.54 1.44 0.81
An updated, in-depth Analysis of Gehl Company (NASDAQ:GEHL) has just been
published by The Napeague Letter. This Analysis includes earnings estimates
and an assessment of its normal market trading range, which shows that GEHL
can easily support a market price around $25.00, 75% higher than its current
trading range.
Additional information, including the in-depth Analysis of this stock
can be found at napeague.com . I encourage you to read the
entire Analysis as well as the Company's investor relations
information and its reports to the Securities & Exchange Commission
prior to making any decision to invest in this or any other Company. |
