Wednesday, February 20, 2008

New Addition to the Long-Term Portfolio

I initiated a position in Manitowoc (MTW) at 39.50 today. The company produces construction cranes, but it also deals in food service equipment (primarily cold-related products like ice machines and refrigerators) and has a ship construction and repair business. There was a positive write-up in the S&P Outlook recently that brought it to my attention. I looked into it, and I felt that the S&P folks made a convincing enough case for me to buy.

They believe that demand for the company's cranes will remain strong through at least the end of the decade. And, the company is trading at the low end of its historical P/E range for the current point in its business cycle. The S&P cites the key risk to their recommendation as weaker than expected performance in global construction markets.

Assuming that nothing about the company really changes for the worse, I plan on keeping this one for the long-term.

*** Edit #1 ***

Looks like Terex (TEX) came in with earns well above consensus estimates. Looks like there is some positive spillover over to MTW. Hoping for the best in the quarters to come.

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