Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Ritchie Bros.: The eBay Of Industrial Equipment

Ritchie Bros. (NYSE:RBA) is the world's largest auctioneer of industrial equipment even though it only has only about 3% market share of this estimated $200 billion industry. The resale market for resale of used industrial equipment is dominated by private sales, and the industry remains highly fragmented. Yet RBA remains stuck in a trading range and is valued at $2.4 billion.

The stock is also subject to an elevated level of short interest at about 20% of the 106 million share count. Should RBA continue to drive revenue and earnings growth, a short squeeze is a distinct possibility. However, I wouldn't base the merits of an investment decision on that outcome alone, but it should be considered.


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