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

Titan Machinery Needs More Than Short Covering

It's always worth remembering that there is more to a stock's performance than just the reported financials. In the case of Titan Machinery (NASDAQ:TITN), fiscal fourth-quarter results were not all that great, and there are still real issues with the business model. Investors liked what they heard about cost-cutting in the next year, though, and with Yahoo! Finance showing about one-third of the float held short, it looks like a short squeeze helped catapult the shares last week.

I saw value up to the high teens on a cash flow-basis last time I wrote, and I still see a similar fair value after this latest quarter. I don't like the model, though, and I think investors have better...

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