We are putting Ex-GeoBargain MNTX back on our watch list and coding it as a GeoBagain on the Radar.  We need to wait for next quarter results and/or a follow-up interview with management before deciding if MNTX will re-qualify as a GeoBargain.  MNTX was coded as a GeoBargain on 1/12/2012 at $5.29 and was highlighted in our GeoNugget  article “Manitex: Another Company That Will Highly Benefit From The Energy Exploration Boom” on 2/2/2012.  Just four months after our coding, we removed MNTX from our GeoBargain list at $10.50 or up 100%.   The company experienced a slow patch in growth for a couple quarters, but MNTX is now back on our radar due to:

  • The company just completed an accretive acquisition (Sabre Manufacturing).
  • Analysts estimates show that the company will  begin to report several consecutive quarters of strong growth after the completion of its third quarter 2013, which would give the stock a  GeoPowerRanking (GPR) of 5; The GPR is the amount of consecutive quarters that a company is expected to experience EPS growth of around 20% to 30%.

We think the Stock could be  worth $18.30 on analyst 2014 EPS estimates of $1.22

Caveat:

  • Although management seems optimistic about its near term growth prospects, it has hedged this optimism with some cautionary commentary regarding our sputtering economy.  Unless we can secure an interview in the next few days, we  think it is prudent to wait for the release of MNTX’s 2013 third quarter release and try to gain more perspective  on  management’s outlook before considering to go long the stock.