Re: ARP - ARB Corporation
I have followed them for many years and they have just kept performing despite threats over the years such as "high fuel prices will kill the 4WD market", exchange rate threats, high steel prices etc. VSntchr is right that their key market is the commercial market, particularly mining, rather than traditional 4WD and so the downturn is relevant but history says they will ride it through.
They are run by the two brothers who founded the company and they are down to earth managers who really know and love their business - just the sort of people I want to be looking after my money. The balance sheet is very healthy with no debt and over $30m in cash - I wonder what they are going to do with that but it won't be anything silly.
While their longer term price graph is very healthy, for some reason they fluctuate more than usual in the short term, presenting good buying opportunities but they can shoot up quickly and so easy to miss out.
PE is high at around 20 but the stock has earned that rating.
I have followed them for many years and they have just kept performing despite threats over the years such as "high fuel prices will kill the 4WD market", exchange rate threats, high steel prices etc. VSntchr is right that their key market is the commercial market, particularly mining, rather than traditional 4WD and so the downturn is relevant but history says they will ride it through.
They are run by the two brothers who founded the company and they are down to earth managers who really know and love their business - just the sort of people I want to be looking after my money. The balance sheet is very healthy with no debt and over $30m in cash - I wonder what they are going to do with that but it won't be anything silly.
While their longer term price graph is very healthy, for some reason they fluctuate more than usual in the short term, presenting good buying opportunities but they can shoot up quickly and so easy to miss out.
PE is high at around 20 but the stock has earned that rating.