ASV Incorporated (ASVI)

[Justin]

A.S.V., Inc. (ASV) designs, manufactures and sells track-driven all-season vehicles. The Company has three product lines, the Posi-Track product line, the undercarriage product line and the Loegering product line. The Posi-Track and undercarriage product lines use a rubber track suspension system that takes advantage of the benefits of both traditional rubber wheels and steel tracks. Posi-Track products are machines used in the construction, agricultural, landscaping, rental, military, and other markets. Undercarriages are sold to Caterpillar Inc. (Caterpillar) as a primary component on its Multi-Terrain Loader (MTL) product line. Loegering is a manufacturer of traction products for wheeled skid-steers and also provides attachments for the skid-steer market. ASV's subsidiaries include A.S.V. Distribution, Inc. and Loegering Mfg. Inc. In January 2005, ASV introduced a model built on RC-85/100 platform and in January 2006, it introduced SR-70 and SR-80 in its Posi-Track product line.

[jarret]

I am surpised there is not more discussion on ASVI as this company looks great and is really undervalued. The MOS is 60 and the company is trading at under 20.

[Timr]

I bought it and sold it in two of my virtual accounts a week or two ago. the stock stayed flat and then started to drop and my stop loss kicked in and sold it. (I made money on one account and lost a little on a another. It was a matter of pennies per share.)

I'll go back and look at it again.

[mcgelligot]

I have followed this one closely. It looks to me as though it has finally hit bottom. I bought in at 19 because all the indicators looked good. (MACD, Stoch, and jutting above the 10 day MA). I think it has been helped by the general rise in the market, but when the market was dumping three days ago, it was swimming north against the tide.

This one has a heavy short interest, but I think the shorts have pushed it about as far down as it can go. Good PE, good growth, good management. This one seems textbook to me.

As has been noted above, the MOS is about 30 and the arrows have turned green.

McGelligot

[doreeg]

Sure would love to know what you all think about the Moat and Management for this company.

The numbers are pretty nice!!!
Doree

[pam32570]

I got into ASVI before it hit $20. I wanted to wait one more day on the 10 day MA to make sure it was going to move up above the line. Everything looks good so far! Its not too late to get in as its still priced below MOS. It already went up over a dollar in one day. Hope it continues!

[doreeg]

Looked at this a little deeper. About 40% of their revs come from Caterpillar. How secure it this? What is future for rubber-tracks? How secure is their patent? How wide and deep is their Moat?

This looks like a great buy - but I have some real questions about the business. Can anyone answer them? Thanks.
Doree

[jarret]

They have a 5 year agreement with Cat that is automatically renewed each year.

Cat has 24% ownership in ASVI and has agreed not to sell ANY shares until 2009.

The new CEO is an ex-cat executive.

I was pretty concerned about the strength of the deal with Cat and from what I can see it is very solid.

If you go online they will send you a great investor package.

Another interesting tibit is that the current CEO and Chairman has asked for the last two years NOT to get a raise and NOT to get any stock options. To me that is someone who is working on my behalf for the good of the company.

[BillZ]

CAT seems to be a pretty good company in their own right. Not quite a Rule#1 but close. Their stock has been rising pretty steadily for the last 3 years from about $27 to the $70 range. It has taken a recent downturn but all the experts predict it to go up in the long term. Justin, would you mind posting the numbers on CAT?

[Justin]

I don't think you'll like what you see, but sure.