CRANE accumulate buy view in place for some time.
CRANE remains an undveralued asset play with a cyclical twist. I remain CRANE bullish.
My strategy for a long time with CRANE (1.83) and I hope I have shown this through the writings, is to keep accumulating CRANE. On the one hand it’s a great hidden asset story, on the other hand earnings have yet to recover there, even while this is highly likely now. One has to own it before the good news confirms it. I think that time is now.
The good news will be renewed earnings momentum going forward, the resumption of the dividend and a chance to beyond what is now expected have a great quarter when one of their crane’s invariably sells. This stock is well worth more then 2.20, in my view.
On every pull back you accumulate buy, like dollar cost averaging as has been pointed out in the lounge in recent months. But the term is not coined by DCA. Its the idea that with stocks, unlike so many other things we buy/invest in, you can get or sell a little at a time. So in time to a decent buy or sell in the average price if you want to hedge your bets a bit. CRANE is a perfect example as we don’t know when a more positive event occurs, so we just nibble here and there and whenever its lower, on that day. Instead of saying to your marketing officer call me if there is a price surge (on-line trading is a better thing to have if you are more active, but you can’t call or have then call so easily): call me if the stocks sags that day a bit as I may buy more.
Then you re-value and buy a bit….and again and again if nothing else changes. In time you have a good position evenwhile you resisted in selling any out, only instead accumulate buy’s even at higher prices. This has worked very well to date while awaiting another price surge.
After a while and resisting selling any to date a surge is likely to occur soon here only you can decide by how much to pull the sell trigger, by unloading some. In CRANE’s case of late it has paid to sell out a bunch above 2 Baht. As everytime since it fell back down. The market devil usually always knocks three times before it surges ahead (same with DEMCO which took 3 attempts to pass 5 Baht), my bet is that on the next surge it will be very possible CRANE will move well beyond that and set a new, post IPO, high price.
CRANE will benefit from the more robust economic expansion in place now. This as it’s a leader in the field with its ability to supply cranes for heavy lifting. Its undervalued inventory of machinery is impressive and this, in long lasting/working high quality steel. This company had a bad start as the IPO (around 2.90 as I recal) due to the timing and mishaps at the financial advisor which brought them public. Also the market then fell back into the 2008 western induced financial crisis. CRANE is a more cyclical stock, a hidden asset value and likely earnings resurgent company. I remain CRANE very excited for some heavy lifting on its stock price as well, before year end.
Today I am so adding CRANE to the model porftolio at 1.83, replacing SGP.
Best Regards,
Paul Renaud.
PS. You can see the recent article on CRANE at this link, note how it outperformed the MAI and SET since, evenwhile it gets little attention from brokers nor the press.
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