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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (7025)	5/17/2024 9:24:30 AM
From: robert b furman	1 Recommendation Recommended By E_K_S Respond to of 7243

There is always excellent conservative advice to be found on this thread! Bob

To: richardred who wrote (7025)	5/23/2024 11:45:18 AM
From: E_K_S	1 Recommendation Recommended By richardred Read Replies (1) \| Respond to of 7243

15% add to Manitowoc Company (MTW) perplexity.ai Manitowoc Company (MTW) reported a strong order backlog of $971.3 million at the end of the first quarter of 2024. Despite facing operational challenges like an adverse product mix, the company experienced a 5.6% year-over-year increase in orders. To address the substantial backlog and generate new orders while improving free cash flow (FCF), Manitowoc's management has implemented the following strategies: Focus on inventory reduction: Manitowoc is placing significant emphasis on reducing inventory levels, which currently stand at $748.0 million, up from $666.5 million at the end of 2023. Streamlining inventory will help improve cash flow generation. Operational efficiency: The company is focused on enhancing operational efficiency and cash flow generation. This includes initiatives to manage working capital and streamline operations. Product innovation: Manitowoc has been investing in product innovation, which is expected to drive increased cash flows and enhance shareholder value in the long run. Successful innovations are poised to generate compounding growth and improve FCF. Market expansion: While facing challenges in the European market, Manitowoc aims to capitalize on the robust demand for mobile cranes globally. Expanding into new markets can help secure fresh orders and sustain growth. Non-new machine sales: Manitowoc has been focusing on growing its non-new machine sales, which increased by 21.2% year-over-year in Q3 2023. This diversification strategy can contribute to more consistent cash flows. By executing these strategies, Manitowoc's management aims to convert the impressive order backlog into revenue while maintaining a strong pipeline of new orders, ultimately driving improved free cash flow generation and profitability Stock selling at 0.75x BV; PE 10x; Quarterly FCF negative but is/was positive last two years. Idea is if they work off their backlog & develop their used equipment sales; FCF s/d turn positive. So will they develop a rental division and/or work w/ a partner. Have favorable trade-in program to build/sell used equipment inventory (to rent and/or lease) while securing new sales. Lot's of possibilities.