The Construction Supplies & Fixtures Industry is one of the better parts of the Capital Goods Sector in these troubled stock market times. Most of the stock listings are from medium and large capital blocks. This company, with a market capitalization of less than $250 million, is therefore a suitable entry route for new investors.
The company deals in some of the best brands in the business. It supports sales of new and second-hand equipment with extensive after-sales services in parts, maintenance, and rentals. The management has focused in inorganic growth throughout the grain producing belt of the United States. It is especially well represented in the Mid-West.
Though short-term prospects for grain and bio-fuel bode well for the company, it also has substantial strengths in general construction and infrastructure. Therefore, investors can look forward to sustained business performance even when demand from farms level off. The company deals in relatively expensive and heavy equipment, effectively shutting out competition from smaller rivals.
Preferential clients of this distribution network will appreciate the GPS signaling, insurance, and other financial services that it has added to its revenue lines. This horizontal integration helps to cover the company’s fixed establishment costs, and bonds it better with customers as well.
Results during the Most Recent Quarter show that the company has gained significant market shares. Annual growth has been three times higher than for the Construction Supplies & Fixtures Industry, and five times better than for the Capital Goods Sector. This trend is likely to continue during the rest of 2008 as demand for farm products keeps growing.
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