Sunday, October 27, 2013

"Time to be wary with the government continuing to run up its debt tab. But there are still good values out there to invest in. We still have another quarter of good upside movement in the market."

Dow Jones Industrial Average 15,570  (UP) week ending 10-25-2013

 Fiver - Could see the future in Watership Down
Many of you have read Richard Adam's classic novel Watership Down and remember Fiver, the rabbit who was a prophesier of the future. In the picture to the left, Fiver sees blood in the field and was scared because he sees the coming destruction of the warren. Well, that is kind of how I feel right now with the government not reducing any spending at all when pressed to do so. Add on top of that the Affordable Care Act law, which I believe will add another 3-4 Trillion dollars to our overall national debt. A scary view out into our future.

In the short term, full steam ahead, but sometime in 2014, we could run into a very ugly situation with a downgrade of  US credit rating and a rise in interest rates. So keep your eyes wide open here and if it starts to look dicey,  start getting some of your assets to the sidelines.

Manitex International, (Symbol MNTX, $13.87), is the kind of stock you may want to look at going into this type of period. It runs below the current of the mainstream market. The stock was mentioned in Zacks Investment Ideas as a "best Value Play" and was also mentioned on Forbes List of America's best Small Companies.

Manitex International, Inc. is a leading provider of engineered lifting solutions including cranes, reach stackers and associated container handling equipment, rough terrain forklifts, indoor electric forklifts and special mission oriented vehicles, including parts support.

MNTX stock is up 53% this year and the One year change in the stock is up 107.95%. Numbers vary depending to what site you go to. PEG ratio 0.83 on one site and 0.2375 on another. Either way, cheap compared to growth. Return on Equity is 13.60 %. This small cap stock did Revenues of $232 Million. Revenue growth has been 50% and the expected revenue growth is 20%.

1 year earnings growth has been 40% with ongoing earnings growth at 27.3%. The forward PE on the stock is 11.80. The IBD rating on the stock is 98-91-91. If you read Investor's Business Daily you know what that means. If not, you need to spend a couple bucks and buy a copy!

The 2013 earnings per share estimate is $0.86 and the 2014 earnings per share is projected at $1.20.

So, let's see how this 4th quarter rolls out and be prepared to go into a very defensive mode if the "Drunken Sailor" spending and the Fed "Non Tapering" continues down there in Washington DC. Somebody in Congress needs to step up and make a stand.

Feel free to comment your opinion on my blog.

See you next week ,   


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