Cows poo and you make money!
Investor's Business Daily opened up my eyes to a company that is in my home state of Wisconsin. The company is named Gehl Company, and it makes equipment for light construction and agricultural businesses. Wow, could it be more boring? I know you're pumped....so read more below
...Construction equipment comprises skid loaders, telescopic handlers, asphalt pavers, compact excavators, compact track loaders, all-wheel-steer loaders, compact loaders and attachments and is primarily sold to contractors, sub-contractors, owner operators, rental stores and municipalities. Agriculture equipment is sold to customers in the dairy and livestock industries, and includes a range of products, including haymaking, forage harvesting, materials handling (skid loaders, telescopic handlers, compact excavators, compact track loaders, all-wheel-steer loaders, compact loaders and attachments), manure handling, and feedmaking equipment.
Now I know you're excited. Manure equipment. Sweet. You're thinking, where can I put my money? I'll be rollin' in the s***...
Ok, so hear me out. James O'Shaughnessy showed us that combining momentum with value can be awesomely powerful (article on MSN). Yeah, I said awesomely. I'm young, so I get to do that. The GEHL snowball is beginning to get big and there's your momentum. So what, you say! Check this out - that mostly sentiment indicator called the Price to Sales ratio is 0.7. Your P/E multiple is at 19. GEHL had some lean years from '00 to '02, but with 40+% growth in revenues the past two years times are looking good. Companies have cash, rates are low, and these types of companies are spending it to fund projects that look good. That makes GEHL look good. Buy GEHL.
For more on James O'Shaughnessy's strategy being put to use (with some tweaks), visit AlphaKing and its education section.
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