Two New Buys from Turner
01/26/2007 12:00 am EST
Veteran advisor Mike Turner puts prospective companies through a rigorous analysis in determining if they are a match for his clients' portfolios. Here, he uncovers two diverse businesses that passed his tests, with flying colors...
"CNH Global N.V. (CNH NYSE) is our new strong buy. The company engages in the manufacture and distribution of agriculture and construction equipment worldwide. CNH Global operates in three segments: Agricultural equipment, construction equipment, and financial services.
"The agricultural equipment segment manufactures agricultural tractors: combine harvesters: hay and forage equipment: seeding and planting equipment: tillage equipment: sprayers: and grape, cotton, coffee, and sugar cane harvesters. The construction equipment segment manufactures heavy and light construction equipment that includes crawler excavators, wheeled excavators, backhoe loaders, wheel loaders, skid steer loaders, backhoe loaders, and crawler excavator. This segment also offers a range of heavy equipment product lines, including graders for all applications, dozers, and articulated and rigid dumpers. The agricultural equipment segment also provides a range of replacement parts and services to support its equipment.
"The construction equipment segment offers its products to municipalities, local governments, rental fleet owners, quarrying and mining companies, waste management companies and forestry related concerns, contractors, residential builders, utilities, road construction companies, rental fleet owners, landscapers, logistics companies, and farmers. The financial services segment offers an array of financial services products, including retail financing for the purchase or lease of new and used company's products, and other manufacturer's products: and other retail financing programs. This segment also provides wholesale financing to its dealers.
"The company sells and distributes its products primarily through a network of dealers and distributors in approximately 160 countries worldwide. CNH Global was founded in 1991 and is based in Amsterdam, The Netherlands. CNH Global N.V. is a subsidiary of Fiat S.p.A.
"Target Corporation (TGT NYSE) is a new buy. The company operates general merchandise discount stores in the US. Target offers an assortment of general merchandise, including consumables and commodities: electronics, entertainment, sporting goods, and toys: apparel and accessories: and home furnishings and decor: as well as a line of food items. The company operates its stores under Target and SuperTarget brands. It also sells its merchandise online, as well as offers credit cards to its customers. In addition, the company runs Target Clinics in select twin cities Target stores, which offer various services, including flu shots: and treatment for common illnesses, such as strep throat, bronchitis, and skin conditions. As of November 17, 2006, Target operated 1,494 stores in 47 states. The company was incorporated in 1902 and is headquartered in Minneapolis, Minnesota."
With annual revenues of $4.5 billion, Minnesota-based Polaris Industries (PII) makes off road vehicl...