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Guru Richard Snow Ups Stake in Titan International

July 09, 2014 | About:
Monica Wolfe

Monica Wolfe

127 followers
Richard Snow (Trades, Portfolio) upped his holdings in Titan International (TWI) this past week according to the GuruFocus Real Time Picks page. According to his investment philosophy, Snow looks for companies that are financially strong, but with stock prices that have been depressed due to temporary or intermediate term difficulties. Snow relies on extensive research to determine the probability of a solution, gain confidence in the company’s ability to survive the difficulty, and estimate the value of the stock once the difficulty has passed. Snow believes that, when using this strategy, the downside is protected because the stock price is already depressed making it a reasonably safe strategy, yet one capable of achieving significant returns.

The guru upped his stake 39.09% in Titan by purchasing 773,257 shares of the company’s stock. He bought these shares at around the daily average price of $16.87 per share, and since his buy the price per share has dropped approximately -1% to $16.77 per share.

Snow now holds on to 2,751,395 shares of Titan International stock, representing 5.14% of the company’s shares outstanding as well as about 2.1% of his total assets managed.

Richard Snow (Trades, Portfolio)’s historical holding history as of the close of the first quarter:

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As seen in the chart above, the guru has been consistently increasing his position in the company every quarter. Although this most recent buy gives Snow an over 5% stake in the company.

Titan International is a wheel, tire and undercarriage industrial group servicing customers across its target markets. Titan International, a holding company, owns subsidiaries that supply wheels, tires, assemblies and undercarriage product for off-highway equipment used in agricultural, earthmoving/construction and consumer applications.

Titan International’s historical revenue and net income:

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The analysis on Titan International reports that the company’s revenue has slowed down over the past year, it has issued $45.703 million of debt over the past three years and its asset growth is faster than its revenue growth.

Richard Snow (Trades, Portfolio) is the largest guru shareholder of Titan stock, but there are eight other gurus who hold sizeable stakes in the company. Check out these gurus’ holding histories here.

The company’s closed competition is in Carlisle Companies (CSL), and you can check out their comparative metrics here.

The company is set to release their second quarter financial results on July 24, 2014.

Titan also recently announced a quarterly dividend of $.005 per common share for the second quarter. The dividend will be paid on July 15 to shareholders of the record as of June 30, 2014.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Titan International has a market cap of $877.2 million. Its shares are currently trading at around $16.37 with a P/E ratio of 54.80, a P/S ratio of 0.40 and a P/B ratio of 1.30. The company had an annual average earnings growth of 9.40% over the past ten years.

GuruFocus rated Titan the business predictability rank of 2.5-star.

Check out more of Richard Snow’s holdings here.

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