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

Terex Needs A Jolt Of Growth To Head Higher

Since I last wrote an article on Terex (NYSE:TEX) in June 2013, shares traded around $28. At that time, shares looked like a compelling value due to a global construction market recovery, robust growth in Terex' aerial work platform end market and continued focus on margin expansion at various Terex' operating units.

While Terex did execute in the latter half of 2013, growth appears to have stalled again as Q1 consolidated net sales were flat year-over-year. Although management expects demand to rebound in the latter half of 2014 (as it did in 2013), equity holders are taking on more risk this go around as shares trade at a much richer valuation.

At this point, Terex' 2015 expectations...

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