Douglas Dynamics: Getting Ready To Plow Lower
Being the first company of its kind to be a publicly traded snow plow company, and one with a juicy 5.5% dividend yield, investors have been with Douglas Dynamics (PLOW), despite its shares being clearly overvalued.
What's more, even as fundamentals have been deteriorating, investors have continued to turn a blind eye, clinging to the nostalgia of a 2010 IPO that almost wasn't. PLOW's stock debuted on the NYSE in mid-2010 with a $11.25 price, after being originally priced at a $14 to $16 price range. We believe that fair value for PLOW is below its IPO price given declining EBITDA, declining free cash flow and an over-leveraged balance sheet....
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