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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details