Stocks & Investing
Stocks and Investing
Stocks and Investing 
Mon, August 22, 2011
FRPT, WMCO, ACW, STS, NAV, TWI, Auto/Truck - OEM Stocks Undervalued
August 22, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Auto/Truck - OEM sector and these stocks are the most undervalued as of today. FORCE PROTECTION INC (NASDAQ:FRPT), WILLIAMS CONTROLS INC (NASDAQ:WMCO), ACCURIDE CORP (NYSE:ACW), SUPREME INDS INC-CLASS A (AMEX:STS), NAVISTAR INTERNATIONAL CORP (NYSE:NAV), TITAN INTERNATIONAL INC (NYSE:TWI) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry
FRPT FORCE PROTECTION INC 3.5 6.94 49.60% Undervalued Auto/Truck - OEM
WMCO WILLIAMS CONTROLS INC 10.83 13.86 21.90% Undervalued Auto/Truck - OEM
ACW ACCURIDE CORP 6.9 13.29 48.10% Undervalued Auto/Truck - OEM
STS SUPREME INDS INC-CLASS A 2.37 2.56 7.40% Undervalued Auto/Truck - OEM
NAV NAVISTAR INTERNATIONAL CORP 35.87 72.08 50.20% Undervalued Auto/Truck - OEM
TWI TITAN INTERNATIONAL INC 16.43 21.22 22.60% Undervalued Auto/Truck - OEM
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
FORCE PROTECTION INC (NASDAQ:FRPT) - Force Protection, Inc., together with its subsidiaries, engages in the design, manufacture, testing, delivery, and support of blast and ballistic protected vehicles. The companys specialty vehicles protect their occupants from landmines, hostile fire, and improvised explosive devices (IEDs). Its vehicle platforms comprise The Buffalo, a mine protected clearance vehicle; and The Cougar, a family of medium-sized blast and ballistic-protected vehicles, including The Cougar Mastiff, a 6-wheeled vehicle, and The Cougar Ridgback, 4-wheeled vehicle; and The Cheetah, a lighter weight 4-wheeled vehicle. The company also develops armor kits and additional products to protect against rocket-propelled grenades, and under body armor kits to mitigate blast effects on other military vehicles. In addition, it develops life cycle support services that involve in the development of technical data packages, supply of spares, field and depot maintenance activities, assignment of field service representatives, and advanced off-road driver and maintenance training programs. The company offers its services primarily to the U.S. Army, the U.S. Marine Corps, foreign military allies of the United States; and the U.K. Ministry of Defence. Force Protection, Inc. was founded in 1996 and is headquartered in Ladson, South Carolina.
WILLIAMS CONTROLS INC (NASDAQ:WMCO) - Williams Controls, Inc., together with its subsidiaries, engages in the design, manufacture, and sale of electronic throttle controls and pneumatic controls for heavy trucks, transit buses, off-road equipment, and military applications worldwide. The companys electronic throttle control systems send a signal proportional to throttle position to adjust the speed of electronically controlled engines; and pneumatic control systems are used for vehicle control system applications, such as power take-offs and air-control applications. It also offers electronic sensors. The company sells its products directly to heavy truck, transit bus, and off-road original equipment manufacturers, as well as through a network of independent distributors and representatives, which sell to smaller original equipment manufacturers and to truck and bus owners as replacement parts. Williams Controls, Inc. was founded in 1937 and is based in Portland, Oregon.
ACCURIDE CORP (NYSE:ACW) - Accuride Corporation, together with its subsidiaries, engages in the manufacture and supply of commercial vehicle components in North America. The company offers heavy- and medium-duty steel and aluminum wheels, light truck steel wheels, and military wheels; and wheel-end components and assemblies, such as brake drums, disc wheel hubs, spoke wheels, disc brake rotors, and automatic slack adjusters. Its products also include truck body and chassis parts comprising bumpers, fuel tanks, battery boxes and toolboxes, front-end cross members, muffler assemblies, and crown assemblies and components, as well as fenders, exhaust components, sun visors, windshield masts, step assemblies, quarter fender brackets, under bells, fuel tank supports, hood inner panels, door assemblies, dash panel assemblies, outrigger assemblies, diesel particulate filter housings, and various other components. In addition, the company offers air suspension and static seating assemblies for heavy- and medium-duty trucks, the related aftermarket, and school and transit buses under the Bostrom brand name; and other commercial vehicle components, including steerable drive axles and gear boxes, transmission and engine-related components, industrial components, and non-powered farm equipment. It markets its products under the Accuride, Gunite, Imperial, Bostrom, Fabco, Brillion, and Highway Original brand names. Accuride Corp. was formerly a subsidiary of Freeport-McMoRan Corporation. Accuride Corporation was founded in 1986 and is headquartered in Evansville, Indiana.
SUPREME INDS INC-CLASS A (AMEX:STS) - Supreme Industries, Inc. and its subsidiaries manufacture and sell trucks, buses, and armored vehicles. Its products include Signature Van bodies for dry-freight transportation; Iner-City cutaway van bodies for various commercial applications; portable storage containers for warehouse storage of household goods; Spartan service bodies for job-site protection from the weather; and Spartan cargo vans for moving up from a traditional cargo van into the truck body category. The companys products also comprise Spartan MX insulated bodies for hand-loaded refrigerated deliveries; Astro Body, an alternative to the cargo van; and Kold King insulated van bodies for temperature controlled hand-load or pallet-load applications, as well as to distribute fresh and frozen products. In addition, its products consists of stake bodies for agricultural and construction industries transportation needs; suburbans for governmental agencies; armored trucks; Supreme specialty vehicles, such as SWAT rapid deployment vehicles, prisoner transport, mobile command centers, and mobile medical units for transportation of emergency response and homeland security personnel; and StarTrans shuttle buses for hotels, nursing homes, car leasing companies, and airport-related users. Further, the companys products include StarTrans mid-size buses for public transit and tour markets; StarTrans trolleys for resort areas, theme parks, and cities; StarTrans tourliner for church groups, retirement communities, colleges, and other touring organizations; and StarTrans activity bus for churches, schools, day care centers, and other organizations. Additionally, it offers fiberglass and fiberglass-reinforced products. The company sells the vehicle and/or equipment installed on the chassis to commercial dealers, distributors, fleet leasing companies, or end-users. Supreme Industries, Inc. was founded in 1978 and is based in Goshen, Indiana.
NAVISTAR INTERNATIONAL CORP (NYSE:NAV) - Navistar International Corporation, through its subsidiaries, manufactures and sells commercial and military trucks, buses, diesel engines, recreational vehicles (RVs), and chassis, as well as provides service parts for trucks and trailers. It operates in four segments: Truck, Engine, Parts, and Financial Services. The Truck segment manufactures and distributes trucks and buses for the common carrier, private carrier, government/service, leasing, construction, energy/petroleum, military vehicles, and student and commercial transportation markets under the International and IC brands. It also produces chassis for motor homes and commercial step-van vehicles under the Workhorse Custom Chassis brand name; and RVs, including non-motorized towables under the Monaco family of brands. The Engine segment designs, manufactures, and sells diesel engines under the MaxxForce brand name for use primarily in medium trucks, military vehicles, buses, and heavy truck models to original equipment manufacturers. It also sells engines for industrial and agricultural applications. The Parts segment provides customers with products required to support the companys brands, as well as offers other truck, trailer, and engine service parts. The Financial Services segment provides retail, wholesale, and lease financing services for its trucks and parts. The company also operates as a private-label designer and manufacturer of diesel engines for the pickup truck, van, and sport utility vehicle markets. Navistar International Corporation offers its products and services primarily through dealers and distributors in the United States, Canada, Mexico, Brazil, Argentina, and India. The company was founded in 1902 and is headquartered in Warrenville, Illinois.
TITAN INTERNATIONAL INC (NYSE:TWI) - Titan International, Inc. and its subsidiaries manufacture wheels, tires, and assemblies for off-highway vehicles used in the agricultural, earthmoving/construction, and consumer markets in the United States. It offers rims, wheels, and tires for use on various agricultural and forestry equipment, including tractors, combines, skidders, plows, planters, and irrigation equipment, and sells these products directly to original equipment manufacturers and to the aftermarket through independent distributors, equipment dealers, and through its own distribution centers. The company also provides rims, wheels, and tires for various off-the-road earthmoving, mining, military, and construction equipment, including skid steers, aerial lifts, cranes, graders and levelers, scrapers, self-propelled shovel loaders, articulated dump trucks, load transporters, haul trucks, and backhoe loaders. In addition, it offers wheels and tires; and assembles brakes, actuators, and components for boat, recreational, and utility trailer markets, as well as builds various products for all-terrain vehicles, turf, golf car, and trailer applications. The company was founded in 1890 and is based in Quincy, Illinois.
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