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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (75305)	3/23/2024 4:37:03 AM
From: Sean Collett	1 Recommendation Recommended By E_K_S Respond to of 78717

Good call out on the FCF. TITN came up on a screen I was running a bit ago but the inventory build was a red flag. When I looked at them inventory had built up 154% since early 2022. This would be the second year for TITN they have seen negative FCF too. I have been adding acquisitions into my calculation as it's still a use of cash and that makes the FCF even worse if you consider that. They're investor presentation stated they're expecting "gross margin normalization driven by increased equipment availability", so this inventory situation can be setup to hurt them for a while. This statement was also mentioned on three different slides to drive the point home too. -Sean

To: Spekulatius who wrote (75305)	3/23/2024 7:31:39 AM
From: Madharry	Read Replies (2) \| Respond to of 78717

re TTN I think the key question is whether the inventory position is right sized or whether they miscalculated on their anticipated sales level and have an inventory problem. Is also not clear to me why they are anticipating increasing sales but declining profits overall. On the face of it company still looks cheap at 7 times earnings.