Terex (TEX) Warns of Losses, Job Cuts, and Covenants; NetApp (NTAP) Reminds us "Tech is a Great Place" to Invest
By:
TraderMark Thursday, February 12, 2009 10:51 AM
Speaking of earnings reports that speak to the true state of the economy... it looks like the Obamaconomy is coming too late for Terex (TEX). Last time we looked at it, it was a $50 stock that warned and fell 20% (
Sep 4, 2008: Terex, IBM - Be Careful What you Wish For)
Terex (TEX) is not a company I follow that closely but have it out there with 1 eye as a "global construction" play. Down close to 20% today as the market takes another sacrifice. I think this will be a "preview" of what to expect in the coming 2 quarters from a litanty of multinationals now that we've achieved our goal of exporting our virus worldwide and causing the rest to slow ... (which again is "happily cheered" by the punditry since it means the US can lead the others out of the morasse - as if its that simple - we led them in, we'll lead them out - 1st grade logic)
Today? It's going to be a $14 stock that is falling 20%ish. (at least based on yesterday's after hours) Note to readers - it is never a good thing when you cannot even see the 200 day moving average on a multi month chart.
Terex Corporation manufactures capital equipment for construction, infrastructure, quarrying, mining, shipping, transportation, refining, and utility industries worldwide.
Outside the litany of typical bad news, there is the word that requires us to shout "Danger Will Robinson" - bank "covenants". Potentially broken covenants sing out "short me!" i.e. "when hedge funds attack".
- Diversified manufacturer Terex Corp. said Wednesday it fell to a $421.5 million loss in the fourth quarter and said it has already cut or will cut more than 5,000 jobs, including the majority of its temporary work force.
- Revenue dropped roughly 20 percent to $2.08 billion from $2.59 billion a year ago, as declining demand in the company's aerial work platforms, construction and materials processing businesses continued.
- The company also provided a dismal revenue outlook for 2009.
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