Sunday, February 17, 2008

Hit #186 (ASV)

Construction vehicle maker A.S.V (ASVI) is being acquired by Terex in a $488 million cash transaction. The $18/share offer translates into a gain of 28.9% over my average cost of $13.96.

I had mentioned ASV in an earlier post pointing out that it made the most promising bet in the sector.

Construction activity, residential as well as commercial, has slowed down dramatically. This has caused severe pullbacks in most stocks related to the sector. For long-term investors this has created good entry points. I would recommend buying and holding Terex (TEX), CNH Global (CNH), Caterpillar (CAT) and Kubota (KUB).

Previous hit - CheckFree (#185)


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