Oct. 1, 2014, 2:00 PM
- Activist investor Relational Investors "plans to wind down its operations and dissolve its current funds by the end of next year," the WSJ reports. A new fund with the same name is expected to be be eventually launched, but founders Ralph Whitworth and David Batchelder "will cede day-to-day control."
- The report comes after Whitworth took a leave of absence in July to focus on his health. Relational has $6B in assets under management.
- Many of the companies Relational holds positions in have added to their Wedenesday losses following the report: MHR -6.8%. CLH -5.9%. MTW -4.3%. SPW -3.7%. BEAV -3.5%. TKR -3%. HOLX -2.8%. PMCS -3.6%.
Sep. 19, 2014, 2:28 PM
- Caterpillar (CAT -1.7%) says worldwide machinery sales by its dealers fell 10% for the three-month period ended in August, marked by a 29% plunge in Latin America sales; global sales had dropped 9% in the May-July period and 10% in April-June.
- North America was the only region where sales were up in the latest rolling period as sales rose 8%, but that was down from 11% growth in July and a 14% rise in June.
- CAT's worldwide mining equipment sales fell 33% Y/Y, while construction equipment sales fell 1%; a 12% sales increase in its North America construction division was offset by a 23% drop in Latin America and a 10% decline in Asia/Pacific.
- The lone bright spot was a 4% sales increase in its energy and transportation equipment division.
- Mining equipment peers also are weak in today's trade: JOY -2%, MTW -3.7%, TEX -1%.
Jul. 31, 2014, 9:11 AM| 4 Comments
Jul. 30, 2014, 5:15 PM
Jun. 30, 2014, 9:15 AM
- Price targets of Manitowoc (MTW) shares are on the rise, after receiving higher estimates the last few days. Credit Suisse this morning upped the price target of Manitowoc from $34 to $39, despite missing Q1 EPS and revenue in May.
- Jefferies on Friday upgraded MTW shares from "underperform" to a "hold" rating, and raised the stock price target to $33 from $24.
- MTW +0.5% premarket
Jun. 27, 2014, 2:58 PM
- Manitowoc (MTW +11.2%) says it will consider Relational Investors' proposal to spin off its food service business from its industrial business, in response to last night's news that the activist fund had amassed an 8.5% stake and believes a breakup would enhance capital allocation and strategic flexibility.
- MTW likely will focus on improving its operational efficiencies in cranes and food service while it assesses the longer-term merits of a potential spinoff, a William Blair analyst says, adding that "the activist investors are dug in, and the process could take some time.”
- Jefferies upgrades MTW shares to Hold from Underweight, believing the entry of an activist places a floor on the shares, but BMO cuts shares to Market Perform from Outperform, noting MTW is incorporated in Wisconsin, which has strong anti-takeover provisions and would make it difficult for Relational to acquire 10% or more of the company without the approval of the board and management (Briefing.com).
Jun. 27, 2014, 9:19 AM
Jun. 26, 2014, 5:58 PM
- Relational Investors confirms via a 13D filing that it owns an 8.52% active stake in Manitowoc (MTW), and urges a spinoff of the company's food business (earlier).
- Relational says the market significantly undervalues MTW due to its combination of the two businesses, and that a spinoff of the food business from the crane business would maximize shareholder value; it says it met with MTW management in January to outline its suggestions, but the Board has declined a request for a meeting.
- MTW +11.8% AH.
Jun. 26, 2014, 5:34 PM
Jun. 26, 2014, 4:49 PM
- Manitowoc (MTW) +11.6% AH on news it will be targeted by Relational Investors after the activist shareholder took an 8.5% stake in the industrial company with the aim of dividing it in two, NYT's Dealbook reports.
- The firm is expected to argue that MTW, which makes both food-service equipment such as ice-making machines as well as industrial cranes, would be better served by having those operations exist as separate publicly traded companies.
- Relational has successfully called for such a division at companies such as Timken, B/E Aerospace and ITT.
May. 2, 2014, 9:18 AM
May. 1, 2014, 4:33 PM| 1 Comment
Mar. 24, 2014, 4:44 PM
- Manitowoc (MTW) has been among the top-performing U.S. machinery stocks this year, but today it was one of the worst, -5.2% after a Jefferies downgrade due to valuation.
- The firm says its channel checks and conversations with industry participants continue support its belief that cranes - lattice-boom cranes, tower cranes, mobile telescopic cranes, boom trucks - will be a 2015 story.
- MTW shares trade at an EV/sales multiple of 137% and an EV/EBITDA multiple of 11.1x on 2014 estimates, significant premiums to the closest competitor (Terex: 80% EV/sales, 8.0x EV/EBITDA).
- YTD: MTW +32.3%, CAT +6.6%, TEX +2.3%, JOY -2.9%, DE -3.1%.
Feb. 20, 2014, 6:54 PM
- Caterpillar’s (CAT) shares have gained 6.7% YTD, more than double their 2013 gain, and Deutsche Bank's Vishal Shah thinks they can move another 25% higher, rating CAT a Buy with a $122 price target.
- Shah believes investors are overly focused on the decline in CAT's resource industries revenue, which will likely trough earlier than expected in 2014, and are neglecting the significant growth opportunities within the construction segment over the next 3-4 years as well as consistent execution within the power systems segment.
- The firm eyes a recovery in the overall U.S. machinery sector driven by accelerating global GDP growth; it rates Deere (DE), Cummins (CMI) and Terex (TEX) as Buys but rates Joy Global (JOY), Manitowoc (MTW) and Agco (AGCO) as Holds.
Jan. 31, 2014, 12:46 PM
Jan. 31, 2014, 9:09 AM
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