Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Douglas Dynamics Looks For Cold Weather To Spur A Hot Streak

The last couple of years have added some operational complexity to Douglas Dynamics' (NYSE:PLOW) business, as lower snowfalls and economic issues led to lower demand for the company's market-leading snowplows and lower orders from dealers looking to better manage their inventory. This winter has seen something of a perfect storm for the company, as higher than average snowfalls compared with low dealer inventories have led to higher shipments, orders, and management expectations for 2014 performance.

Douglas Dynamics enjoys very solid market share and should see relatively consistent replacement demand. The company also has the opportunity to pursue deals like its TrynEx acquisition to leverage its dealer network and generate operating synergies from similar businesses. All of that...

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