RE:RE:GWT is in a bad spotA Buffett style investment. Buy a great meat and potatoes type business at a discount when others are fleeing the market. Busses will always be required. People need busses for transportation and that trend will continue until teleporting is developed in a 1000 years. The demand is growing. Old people are getting older, millennials may never own their own car, the worlds population is expanding, residents of developing countries are finally making enough money to take a bus.
This bus trend in general is growing and BUS has captured a niche setting with little or no competition.
We know that the business breaks even at about $20M per quarter. Now draw a chart for revenues and unit production. Both charts will produce a mountain face steeper than I’d safely walk down. Trends are everything in the world investing. Try and tell me that revenues and production will go stagnant and go sideways.....not going to happen. These guys are going to be printing money like mad in the future.
I’m long so it only matters what the price will be in 3 and 5 years or whenever a strong takeout offer comes along. All that we can assume about the price is that it will surely be much higher than the 2017 high by 2020 and 2022.
Investors come and go and may take or give away profit. But over time, good businesses prove that they can consistently deliver value to shareholders and only stay “undervalued” for so long.