Prudent Stock: 11/29/07

(MTW) The Manitowoc Company, Inc. engages in the manufacture and marketing of cranes and related products, foodservice equipment, and marine products in the United States and internationally. It operates through three segments: Cranes and Related Products (Cranes), Foodservice Equipment (Foodservice), and Marine. The Cranes segment designs, manufactures, and distributes crawler and truck mounted lattice-boom cranes, top slewing and self erecting tower cranes, mobile telescopic cranes, and hydraulically powered telescopic and articulated boom trucks under Manitowoc, Potain, Grove, and National brand names. This segment provides crane product parts and services, and crane rebuilding and remanufacturing services under the Crane CARE brand name. Its products are used in various applications, including energy, petrochemical, and industrial projects; infrastructure development; commercial and high-rise residential construction; and mining and dredging. The Foodservice segment designs, manufactures, and markets commercial ice-cube and flaker machines and storage bins; refrigerators and freezers; refrigerated under counter and food preparation tables; ice/beverage dispensers; post-mix beverage dispensing valves; cast aluminum cold plates; carbonator tanks; long-draw beer dispensing systems; compressor racks and modular refrigeration systems; pumps; valves; and backroom beverage equipment. It offers its products under Manitowoc, SerVend, Multiplex, Kolpak, Harford-Duracool, McCall, McCann’s, Koolaire, Flomatic, Kyees, and RDI brand names. The Marine segment operates three shipyards in Marinette and Sturgeon Bay, Wisconsin; and Cleveland, Ohio. It designs and constructs military and commercial vessels, double-hulled tank vessels, articulated tug and barge units, dredges, dredging support equipment, and bulk cargo self unloading solutions, as well as engages in large ship construction projects and repair work.

MTW has shown a consistent and predictable history of financial performance. Its current EPS is $3.06 per share, and has a forecasted earnings growth rate of 25.00%, and a current PE of 13.73.

Given the companies forecasted earnings per share, forecasted earnings growth, profitability, given current interest, and inflation rates it should be fairly valued at a range of $73-78 per share. If you look at the chart the stock it has found real support at the 200 day moving average. In my opinion the stock was unfairly sold of after earnings due to domestic weakness and fears that the rest of the world would slow due to a US recession. I think all that is reflected by the sell off in the stock in recent days. I opened a position yesterday at the open and will add on any weakness.



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